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Home My WebLink About207-125Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 1/21/2026 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20260121 Well API #PTD #Log Date Log Company Log Type AOGCC E-Set# BCU 16RD 50133205540100 207125 12/3/2025 AK E-LINE PPROF T41253 BRU 211-35 50283201890000 223050 11/7/2025 AK E-LINE Perf T41254 BRU 213-26 50283201920000 223069 11/23/2025 AK E-LINE Perf T41255 BRU 213-26T 50283202040000 225038 11/4/2025 AK E-LINE Perf T41256 BRU 241-34S 50283201980000 224077 11/9/2025 AK E-LINE Perf T41257 BRU 241-34T 50283201810000 220052 11/6/2025 AK E-LINE Perf T41258 BRU 244-27 50283201850000 222038 12/13/2025 AK E-LINE Perf T41259 BRU 244-27 50283201850000 222038 12/19/2025 AK E-LINE StripGun T41259 GP ST 17586 9 50733204480000 193062 11/13/2025 AK E-LINE Perf T41260 IRU 241-01 50283201840000 221076 12/21/2025 AK E-LINE Perf T41261 IRU 241-01 50283201840000 221076 12/30/2025 AK E-LINE Perf T41261 IRU 241-01 50283201840000 221076 12/16/2025 AK E-LINE Plug T41261 IRU 241-01 50283201840000 221076 11/26/2025 AK E-LINE Plug/Perf T41261 KALOTSA 01 50133206570000 216132 11/19/2025 AK E-LINE Perf T41262 KBU 31-18 50133206490000 215024 11/8/2025 AK E-LINE Drift/PPROF T41263 KU 12-17 50133205770000 208089 11/14/2025 AK E-LINE StimGun T41264 LRU C-01RD 50283200610100 201168 11/27/2025 AK E-LINE RCT/Perf T41265 MPI 2-32 50029220840000 190119 12/10/2025 AK E-LINE LDL T41266 MPI 2-38 50029220900000 190129 12/5/2025 AK E-LINE LDL T41267 MPU H-16 50029232270000 204190 12/3/2025 AK E-LINE CBL T41268 MPU H-16 50029232270000 204190 11/19/2025 AK E-LINE TubingCut T41268 MPU I-14 50029232140000 204119 11/13/2025 AK E-LINE CBL T41269 NCIU A-06A 50883200260100 225071 11/28/2025 AK E-LINE Perf/Plug T41270 NCIU A-08 50883200280000 169063 12/2/2025 AK E-LINE GPT T41271 NCIU A-19 50883201940000 224026 12/16/2025 AK E-LINE GPT T41272 NCIU A-19 50883201940000 224026 12/12/2025 AK E-LINE GPT/Perf/Plug T41272 NCIU A-19 50883201940000 224026 12/17/2025 AK E-LINE Perf T41272 NCIU A-21A 50883201990100 225075 12/30/2025 AK E-LINE PPROF T41273 OP19-T1N 50029234910000 213068 11/19/2025 AK E-LINE TubingPunch T41274 BCU 16RD 50133205540100 207125 12/3/2025 AK E-LINE PPROF Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2026.01.21 13:56:35 -09'00' Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: PCU D-10 50283202080000 225082 12/9/2025 AK E-LINE Perf T41275 SCU 322C-04 50133101040100 215217 12/4/2025 AK E-LINE TubingPunch T41276 SRU 222-33 50133207150000 223100 12/7/2025 AK E-LINE Plug T41277 SU 43-10 50133207390000 225107 11/26/2025 AK E-LINE CBL T41278 TBU A-12RD 50733200760100 171029 11/29/2025 AK E-LINE Perf T41279 TBU D-24A 50733202240100 174064 12/2/2025 AK E-LINE TubingPunch T41280 TBU D-24A 50733202240100 174064 11/21/2025 AK E-LINE TubingPunch T41280 TBU M-10 50733205880000 209154 11/15/2025 AK E-LINE Perf T41281 Please include current contact information if different from above. Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2026.01.21 13:56:51 -09'00' 1. Type of Request:Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 2.Operator Name:4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Yes No 9. Property Designation (Lease Number):10. Field: 11. Total Depth MD (ft):Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: Junk (MD): 9,421'N/A Casing Collapse Structural Conductor 1,500 psi Surface 1,950 psi Intermediate 3,090 psi Production 10,540 psi Liner Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments:Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16. Verbal Approval:Date: GAS WAG GSTOR SPLUG AOGCC Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Authorized Title: Conditions of approval: Notify AOGCC so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other Conditions of Approval: Post Initial Injection MIT Req'd? Yes No APPROVED BY Approved by: COMMISSIONER THE AOGCC Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng N/A; N/A N/A; N/A 8,580'9,402'8,561' Beaver Creek Beluga Gas 20" 13-3/8" See Attached Schematic 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Beaver Creek Unit (BCU) 16RDCO 237D Same 8,561'3-1/2" ~2,744psi 9,381' N/A Length August 13, 2024 3-1/2" 9,402' Perforation Depth MD (ft): 5,188' See Attached Schematic 5,750 psi 3,060 psi 3,450 psi 103' 4,639' 103' 2,500' Size 82' 9-5/8"5,167' 2,479' MD Hilcorp Alaska, LLC Proposed Pools: 9.3# / L-80 TVD Burst 9,402' 10,160 psi 2,285' Tubing MD (ft):Perforation Depth TVD (ft): Subsequent Form Required: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEDA028083 207-125 50-133-20554-01-00 Tubing Size: PRESENT WELL CONDITION SUMMARY Scott Warner, Operations Engineer AOGCC USE ONLY Tubing Grade: scott.warner@hilcorp.com 907-564-4506 Noel Nocas, Operations Manager 907-564-5278 Suspension Expiration Date: Will perfs require a spacing exception due to property boundaries? Current Pools: MPSP (psi):Plugs (MD): 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name and Digital Signature with Date: m n P s 66 t N Form 10-403 Revised 06/2023 Approved application valid for 12 months from date of approval.Submit PDF to aogcc.permitting@alaska.gov Noel Nocas (4361) Digitally signed by Noel Nocas (4361) Date: 2024.07.30 10:24:16 -08'00' 324-438 By Grace Christianson at 10:57 am, Jul 30, 2024 SFD 7/30/2024 DSR-7/31/24 10-404 BJM 8/5/24*&: Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.08.05 15:17:32 -08'00'08/05/24 RBDMS JSB 080624 Well Prognosis Well: BCU-16RD Date: 6/20/24 Well Name: BCU-16RD API Number: 50-133-20554-01-00 Current Status: Producing Gas Well Permit to Drill Number: 207-125 Regulatory Contact: Donna Ambruz (907) 777-8305 First Call Engineer: Scott Warner (907) 564-4506 (O)(907) 830-8863 (C) Second Call Engineer: Chad Helgeson (907) 777-8405 (O)(907) 229-4824 (C) Maximum Expected BHP: 3551 psi @ 8070’ TVD Based on 0.44 psi/ft Max. Potential Surface Pressure: 2744 psi Based on 0.1 psi/ft gas gradient to surface Applicable Frac Gradient: 0.78 psi/ft using 15.0 ppg EMW FIT at the 9-5/8” int. casing shoe Shallowest Allowable Perf TVD: MPSP/(0.78-0.1) = 2744 psi / 0.68 = 4035‘ TVD (Will not perforate above applicable gas pool) Top of Applicable Gas Pool:6501’ MD/ 5828’ TVD Well Status: Online Gas producer flowing at 490 mmscfd, 0 bwpd, 116 FTP Brief Well Summary BCU-16RD was completed as an excape well in 2007 targeting the Beluga formation. The well came online making just over 5.5 MMCFD with little to no water. Additional perforations were added in the lower Beluga 20, 22 and 30 which added 1.5 MMCFD. In 2021 more perforations were added in B-27 to B-29 which increased rate from 250 to 800 mscfd. A plug was set on 10/7/22 to shut off water to keep the well from loading up. The purpose of this sundry is to add additional perforations in the Beluga sands to increase rate. Notes Regarding Wellbore Condition x Inclination o Max inclination = 35 degrees at 2121’ MD x Recent Tags/Fish o 4/19/24: SL RIH w/ 1.96” GR to 8885’ KB, tag, POOH. o 10/7/22: EL- RIH monitoring fluid level, detected gas cut fluid at 8770’, tagged at 8934’. RIH and set CIBP at 8920’. Dump bail 20’ of cement on top of plug. Est. TOC at 8900’. o 7/21/22: 1.75” x 5’ drive down bailer tagged at 8955’ MD, and came OOH with scaring/pinch on the bottom 6” 2.25” LIB tagged at 8954’ MD and came OOH with a metal circular mark, possibly part of escape completion / flapper FL rose from 3900’ to 2400’ throughout the day o 7/14/21: EL shot 6 intervals with 2-3/8” guns (OAL ~30’) Made it down to 8890’ MD (no tag) o 6/23/21: EL shot 3 intervals with 2-3/8” guns (OAL ~30’) Tagged at 9130’ MD Procedure: 1. MIRU E-line and pressure control equipment , equivalent to 4,553' MD SFD 't Well Prognosis Well: BCU-16RD Date: 6/20/24 2. PT lubricator to 250 psi low /3,000 psi high 3. RIH and perforate Bel 15 – Beluga 28 sands from bottom up with 2-3/8” 60 deg phased perf guns: Below are proposed targeted sands in order of testing (bottom/up), but additional sand may be added depending on results of these perfs, between the proposed top and bottom perfs Sand Top MD Btm MD Top TVD Btm TVD Interval BEL 15 ±7,655' ±7,663' ±6,911' ±6,918' ±8' BEL 15 ±7,667' ±7,684' ±6,922' ±6,938' ±17' BEL 18 ±8,037' ±8,057' ±7,266' ±7,284' ±20' BEL 18 ±8,068' ±8,074' ±7,295' ±7,300' ±6' BEL 19 ±8,115' ±8,120' ±7,338' ±7,343' ±5' BEL 19 ±8,125' ±8,149' ±7,348' ±7,370' ±24' BEL 20L ±8,259' ±8,266' ±7,473' ±7,479' ±7' BEL 20L ±8,270' ±8,280' ±7,483' ±7,492' ±10' BEL 21 ±8,331' ±8,336' ±7,540' ±7,545' ±5' BEL 21 ±8,361' ±8,365' ±7,568' ±7,572' ±4' BEL 22 ±8,377' ±8,387' ±7,583' ±7,592' ±10' BEL 23 ±8,475' ±8,482' ±7,675' ±7,682' ±7' BEL 25 ±8,595' ±8,602' ±7,789' ±7,795' ±7' BEL 27 ±8,738' ±8,744' ±7,924' ±7,930' ±6' BEL 28 ±8,849' ±8,854' ±8,029' ±8,034' ±5' a. Proposed perfs are also shown on the proposed schematic in red font b. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation c. Use Gamma/CCL to correlate d. Record Tubing pressures before and after each perforating run at 5 min, 10 min, and 15 min intervals post perf shot (if using switched guns, wait 10 min between shots) e. Pending well production, all perf intervals may not be completed f. If any zone produces sand and/or water or needs isolated, RIH and set plug above the perforations OR patch across the perforations i. Note: All proposed perforations are in the same Pool / PA. A CIBP may be used instead of WRP if it is determined that no cement is needed for operational purposes. 35ft will not be placed on each plug as these zones are close together in same PA. If possible, the CIBP will be set 50’ above of the top of the last perforated sand unless zones are too close together in which case the plug will be set within 50’. g. If necessary, use nitrogen to pressure up well during perforating or to depress water prior to setting a plug above perforations 4. RDMO Attachments: Well Prognosis Well: BCU-16RD Date: 6/20/24 1. Current Schematic 2. Proposed Schematic 3. Standard Well Procedure – N2 Operations Lease: State/Prov:Alaska Country:USA Angle/Perfs:16.5ºĺ20º 158' 21' 4/8/2014 10/19/2022 Date Completed:10/11/07 Ground Level (above MSL):RKB (above GL): Revised By:D Ambruz Downhole Revision Date:Schematic Revision Date: County or Parish:Kenai Peninsula Borough Angle @KOP and Depth:13.9º / 100 ft @ 5,004'Maximum Deviation:35º @ 2,121' Well Name & Number:Beaver Creek Unit #16RD A - 028083 BC-16RD Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Permit #:207-125 API #:50-133-20554-01-00 Property Des:A - 028083 KB:21' AGL (179' KB Elevation) X=317,399.46 Y=2,433,922.36 Lat:60°39' 29.546" N Long:151°01' 4.102" W Spud:05:00 hrs 9/27/2007 TD Reached:10/3/2007 Rig Released:10:00 hrs 10/12/07 Conductor 20" K-55 133 ppf Top Bottom MD 0' 103' TVD 0' 103' Surface Casing 13-3/8" K-55 68 ppf Top Bottom MD 0' 2,500' TVD 0' 2,285' Cmt w/ 670 sks of Type 1, Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' TVD 0' 4,639 Cmt original well w/ 209 Bbls 12.5 ppg of class G. Milled Sidetrack window 4,994' - 5,004' DPM Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 0' 9,402' TVD 0' 8,561' 8-1/2" hole Cmt w/ 1,720 sks (355 bbls) of 15.7 ppg, class G cmt Excape System Details - 7 Excape modules placed. -Red control line for top 6 modules. -Green control line for bottom module. Lower Beluga Perfs: MD (RKB) TVD Date B-20 - 8,176' - 8,192' 7,399' - 7,414' B-22 - 8,411' - 8,431' 7,619' - 7,637' Module 7 - 8,551' - 8,561' 7,750' - 7,759' Module 6 - 8,606' - 8,616' 7,802' - 7,812' B27-1 - 8,700' - 8,714' 7,888' - 7,901' 07/14/21 B27-2 - 8,721' - 8,725' 7,908' - 7,912' 07/14/21 B27-4 - 8,768' - 8,776' 7,952' - 7,960' 07/14/21 B28-3 - 8,820' - 8,833' 8,804' - 8,816' 07/14/21 B28-2 - 8,841' - 8,846' 8,024' - 8,029' 07/14/21 B28-3 - 8,883' - 8,890' 8,064' - 8,070' 07/14/21B28-4 - 8,930' - 8,935' 8,106' - 8,111' 06/23/21 B29-2 - 8,986' - 8,990' 8,160' - 8,163' 06/23/21B29-1 - 8,998' - 9,004' 8,171' -8,177' 06/23/21 Module 5 - 9,011' - 9,021' 8,186' - 8,196' B-30 - 9,019' - 9,046' 8,194' - 8,219' 27 B-30 - 9,031' - 9,058' 8,205' - 8,231' 27 Module 4 - 9,058' - 9,068' 8,231' - 8,240' Module 3 - 9,147' - 9,157' 8,316' - 8,325' Module 2 - 9,192' - 9,202' 8,359' - 8,368'Module 1 - 9,302' - 9,312' 8,464' - 8,474' Top of Cement 4,200' MD CBL (10/26/07) 794' above 9-5/8" window Excape System Details - 4 Disappearing flappers (2-5) - 2 Reclosing flappers (6-7) -Mod 1 -no flapper - Ceramic flapper valves below each module as follows: Flappers MD (RKB): Module 7 - 8,571' Module 6 - 8,626' Module 5 - 9,030' Module 4 - 9,077' Module 3 - 9,166' Module 2 - 9,211' Module 1 - NA 9-5/8" Casing Window milled from 4,994' to 5,004' (Drill Pipe Measurement) Abandoned Sterling Perfs: MD TVD B3 5,676' - 8,686' 5,127' - 5,137' PBTD 8,900' MD 8,078' TVD TD 9,421' MD 8,580' TVD SCHEMATIC Tagged fill @ 9,247' KB (1/24/14) w/ 2.125" E-line Perf Guns Directional Data: KOP - 5,004' at 3.5 deg/100' build EOB - 5,592', 26.9 deg hole angle Drop - 5,719' @ 2.0 deg/100' Hold - 6,858', 16-20 deg hole angle to TD Tree cxn: 6-1/2" Otis B-22 B-30 B-20 B-28/29/30 CIBP 8920' w 20'cmt ToC 8900' 10/7/22 Lease: State/Prov:Alaska Country:USA Angle/Perfs:16.5ºĺ20º 158' 21' 4/8/2014 7/16/2024 Well Name & Number:Beaver Creek Unit #16RD A - 028083 County or Parish:Kenai Peninsula Borough Angle @KOP and Depth:13.9º / 100 ft @ 5,004'Maximum Deviation:35º @ 2,121' Date Completed:10/11/07 Ground Level (above MSL):RKB (above GL): Revised By:D Ambruz Downhole Revision Date:Schematic Revision Date: BC-16RD Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Permit #:207-125 API #:50-133-20554-01-00 Property Des:A - 028083 KB:21' AGL (179' KB Elevation) X=317,399.46 Y=2,433,922.36 Lat:60°39' 29.546" N Long:151°01' 4.102" W Spud:05:00 hrs 9/27/2007 TD Reached:10/3/2007 Rig Released:10:00 hrs 10/12/07 Conductor 20" K-55 133 ppf Top Bottom MD 0' 103' TVD 0' 103' Surface Casing 13-3/8" K-55 68 ppf Top Bottom MD 0' 2,500' TVD 0' 2,285' Cmt w/ 670 sks of Type 1, Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' TVD 0' 4,639 Cmt original well w/ 209 Bbls 12.5 ppg of class G. Milled Sidetrack window 4,994' - 5,004' DPM Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 0' 9,402' TVD 0' 8,561' 8-1/2" hole Cmt w/ 1,720 sks (355 bbls) of 15.7 ppg, class G cmt Top of Cement 4,200' MD CBL (10/26/07) 794' above 9-5/8" window Excape System Details - 4 Disappearing flappers (2-5) - 2 Reclosing flappers (6-7) -Mod 1 -no flapper - Ceramic flapper valves below each module as follows: Flappers MD (RKB): Module 7 - 8,571' Module 6 - 8,626' Module 5 - 9,030' Module 4 - 9,077' Module 3 - 9,166' Module 2 - 9,211' Module 1 - NA 9-5/8" Casing Window milled from 4,994' to 5,004' (Drill Pipe Measurement) Abandoned Sterling Perfs: MD TVD B3 5,676' - 8,686' 5,127' - 5,137' PBTD 8,900' MD 8,078' TVD TD 9,421' MD 8,580' TVD PROPOSED Tagged fill @ 9,247' KB (1/24/14) w/ 2.125" E-line Perf Guns Directional Data: KOP - 5,004' at 3.5 deg/100' build EOB - 5,592', 26.9 deg hole angle Drop - 5,719' @ 2.0 deg/100' Hold - 6,858', 16-20 deg hole angle to TD Tree cxn: 6-1/2" Otis B-22 B-30 B-20 B-28/29/30 CIBP 8920' w 20'cmt ToC 8900' 10/7/22 Excape System Details - 7 Excape modules placed. -Red control line for top 6 modules. -Green control line for bottom module. B-15//1819 STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. 1. Operations Susp Well Insp Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Install Whipstock Perforate Other Stimulate Alter Casing Change Approved Program Mod Artificial Lift Perforate New Pool Repair Well Coiled Tubing Ops Other: Development Exploratory 3. Address:Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 9,421 feet N/A feet true vertical 8,580 feet N/A feet Effective Depth measured 9,402 feet N/A feet true vertical 8,561 feet N/A feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)3-1/2" 9.3# / L-80 9,402' MD 8,561' TVD Packers and SSSV (type, measured and true vertical depth)N/A; N/A N/A; N/A N/A; N/A N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13a. Prior to well operation: Subsequent to operation: 13b. Pools active after work: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Authorized Name and Digital Signature with Date:Contact Name: Contact Email: Authorized Title:Contact Phone: 3,090psi 10,540psi 3,060psi 3,450psi 5,750psi 10,160psi 2,500'2,285' Burst Collapse 1,500psi 1,950psi Production Liner 5,167' 9,381' Casing Structural 4,639' 8,561' 5,188' 9,402' 103'Conductor Surface Intermediate 20" 13-3/8" 82' 2,479' measured TVD 9-5/8" 3-1/2" STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 207-125 50-133-20554-01-00 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Hilcorp Alaska, LLC N/A 5. Permit to Drill Number:2. Operator Name 4. Well Class Before Work: FEDA208083 Beaver Creek / Beluga Gas Pool Beaver Creek Unit (BCU) 16RD Plugs Junk measured Length measured true vertical Packer Representative Daily Average Production or Injection Data Casing Pressure Tubing Pressure 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf MD 0 Size 103' 0 01225 0 650 78 Scott Warner, Operations Engineer 324-438 Sr Pet Eng:Sr Pet Geo:Sr Res Eng: WINJ WAG 373 Water-BblOil-Bbl 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Noel Nocas, Operations Manager 907-564-5278 N/A scott.warner@hilcorp.com 907-564-4506 p k ft t Fra O s 6. A G L PG , Form 10-404 Revised 10/2022 Due Within 30 days of Operations Submit in PDF format to aogcc.permitting@alaska.gov By Grace Christianson at 3:34 pm, Jan 13, 2025 Digitally signed by Noel Nocas (4361) DN: cn=Noel Nocas (4361) Date: 2025.01.13 13:44:22 - 09'00' Noel Nocas (4361) RBDMS JSB 011625 DSR-1/16/25SFD 2/7/2025 Perforate BJM 2/4/25 Page 1/1 Well Name: BCU-016RD Report Printed: 12/18/2024WellViewAdmin@hilcorp.com Alaska Weekly Report - Operations Jobs Actual Start Date:12/11/2024 End Date: Report Number 1 Report Start Date 12/11/2024 Report End Date 12/12/2024 Last 24hr Summary PTW/PJSM. MIRU Yellowjacket E-line. P-test 250/3,000 psi. Run GPT w/ 2.55" GR - tag bottom at 8,884'. Perforate Beluga 28 (8,848' - 8,854'), Beluga 27 (8,738' - 8,744'), Beluga 25 (8,595' - 8,601'), Beluga 22 (8,377' - 8,387'), Beluga 21 (8,360' - 8,365'), Beluga 21 (8,330' - 8,336') with well flowing. Init Q/P 566 mcfd, 68 psi. Final Q/P 783 mcfd, 73 psi. SDFN. Report Number 2 Report Start Date 12/12/2024 Report End Date 12/13/2024 Last 24hr Summary PTW/PJSM. Perforate Beluga 20L (8,270' - 8,280'), Beluga 20L (8,261' - 8,267'), Beluga 19 (8,141' - 8,150'), Beluga 19 (8,126' - 8,140'), Beluga 19 (8,115' - 8,121'), Beluga 18 (8,068' - 8,074'), Beluga 18 (8,037' - 8,053') with well flowing. Init Q/P 686 mcfd, 68 psi. Final Q/P 1629 mcfd, 98 psi. SDFN. Report Number 3 Report Start Date 12/13/2024 Report End Date 12/14/2024 Last 24hr Summary PTW/PJSM. RDMO E-line. Field: Beaver Creek Sundry #: 324-438 State: ALASKA Rig/Service:Permit to Drill (PTD) #:207-125Permit to Drill (PTD) #:207-125 Wellbore API/UWI:50-133-20554-01-00 Lease: State/Prov:Alaska Country:USA Angle/Perfs:16.5ºĺ20º 158' 21' 12/18/2024 Well Name & Number:Beaver Creek Unit #16RD A - 028083 County or Parish:Kenai Peninsula Borough Angle @KOP and Depth:13.9º / 100 ft @ 5,004'Maximum Deviation:35º @ 2,121' Date Completed:10/11/07 Ground Level (above MSL):RKB (above GL): Revised By:D Ambruz Schematic Revision Date: BC-16RD Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Permit #:207-125 API #:50-133-20554-01-00 Property Des:A - 028083 KB:21' AGL (179' KB Elevation) X=317,399.46 Y=2,433,922.36 Lat:60°39' 29.546" N Long:151°01' 4.102" W Spud:05:00 hrs 9/27/2007 TD Reached:10/3/2007 Rig Released:10:00 hrs 10/12/07 Conductor 20" K-55 133 ppf Top Bottom MD 0' 103' TVD 0' 103' Surface Casing 13-3/8" K-55 68 ppf Top Bottom MD 0' 2,500' TVD 0' 2,285' Cmt w/ 670 sks of Type 1, Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' TVD 0' 4,639 Cmt original well w/ 209 Bbls 12.5 ppg of class G. Milled Sidetrack window 4,994' - 5,004' DPM Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 0' 9,402' TVD 0' 8,561' 8-1/2" hole Cmt w/ 1,720 sks (355 bbls) of 15.7 ppg, class G cmt Top of Cement 4,200' MD CBL (10/26/07) 794' above 9-5/8" window Excape System Details - 4 Disappearing flappers (2-5) - 2 Reclosing flappers (6-7) - Mod 1 - no flapper - Ceramic flapper valves below each module as follows: Flappers MD (RKB): Module 7 - 8,571' Module 6 - 8,626' Module 5 - 9,030' Module 4 - 9,077' Module 3 - 9,166' Module 2 - 9,211' Module 1 - NA 9-5/8" Casing Window milled from 4,994' to 5,004' (Drill Pipe Measurement) Abandoned Sterling Perfs: MD TVD B3 5,676' - 8,686' 5,127' - 5,137' PBTD 8,900' MD 8,078' TVD TD 9,421' MD 8,580' TVD SCHEMATIC Tagged fill @ 9,247' KB (1/24/14) w/ 2.125" E-line Perf Guns Directional Data: KOP - 5,004' at 3.5 deg/100' build EOB - 5,592', 26.9 deg hole angle Drop - 5,719' @ 2.0 deg/100' Hold - 6,858', 16-20 deg hole angle to TD Tree cxn: 6-1/2" Otis B-22 B-30 B-20 B-28/29/30 CIBP 8920' w 20'cmt ToC 8900' 10/7/22 Excape System Details - 7 Excape modules placed. -Red control line for top 6 modules. -Green control line for bottom module. 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&ŝŶĂůŝǌĞũŽďůŽŐĂŶĚĚŝƐĐƵƐƐŽƉĞƌĂƚŝŽŶƐǁŝƚŚtĞůůƐŝƚĞDĂŶĂŐĞƌ͘ŽĐƵŵĞŶƚĂŶǇůĞƐƐŽŶƐůĞĂƌŶĞĚ ĂŶĚĐŽŶĨŝƌŵĨŝŶĂůƌĂƚĞƐͬƉƌĞƐƐƵƌĞͬǀŽůƵŵĞƐŽĨƚŚĞũŽďĂŶĚƌĞŵĂŝŶŝŶŐŶŝƚƌŽŐĞŶŝŶƚŚĞƚƌĂŶƐƉŽƌƚ͘ ϭϴ͘Ϳ ZDKEŝƚƌŽŐĞŶWƵŵƉŝŶŐhŶŝƚĂŶĚ>ŝƋƵŝĚEŝƚƌŽŐĞŶdƌĂŶƐƉŽƌƚ͘ Kaitlyn Barcelona Hilcorp North Slope, LLC GeoTechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: kaitlyn.barcelona@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal Received By: Date: DATE: 11/08/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 DATA TRANSMITTAL BCU 16RD (PTD 207-125) Completion Record Perf 07/14/2021 Please include current contact information if different from above. 37' (6HW Received By: 11/09/2021 By Abby Bell at 8:46 am, Nov 09, 2021 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary: Total Depth measured 9,421 feet N/A feet true vertical 8,580 feet N/A feet Effective Depth measured 9,402 feet N/A feet true vertical 8,561 feet N/A feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)3-1/2" 9.3# / L-80 9,402' MD 8,561' TVD Packers and SSSV (type, measured and true vertical depth)N/A; N/A N/A; N/A N/A; N/A N/A; N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Jake Flora Authorized Title:Operations Manager Contact Email: Contact Phone:777-8442 jake.flora@hilcorp.com Senior Engineer:Senior Res. Engineer: Burst 3,060psi 10,160psi 103' 2,285' 5,750psi 3,450psi Collapse 1,500psi 1,950psi 3,090psi 10,540psi Casing Structural 20" 13-3/8" 9-5/8" Length 82' 2,479' 5,167' 9,381' Conductor Surface Intermediate Production Authorized Signature with date: Authorized Name: 0 Casing Pressure Liner 1,189 0 Representative Daily Average Production or Injection Data 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 321-267 94 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 207-125 50-133-20554-01-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name:Hilcorp Alaska, LLC 820 Beaver Creek Unit (BCU) 16RD N/A FEDA208083 5,188' Plugs Junk measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Beaver Creek / Beluga Gas PoolN/A measured TVD Tubing PressureOil-Bbl measured true vertical Packer 3-1/2"9,402' 4,639' 8,561' WINJ WAG 758 Water-Bbl MD 103' 2,500' 0 t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Samantha Carlisle at 10:26 am, Aug 03, 2021 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.08.03 10:10:03 -08'00' Taylor Wellman (2143) BJM 10/19/21 RBDMS HEW 8/5/2021 SFD 8/13/2021DSR-8/3/21 Rig Start Date End Date E-Line 6/23/21 7/14/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name BCU-16RD 50-133-20554-01-00 207-125 06/23/2021 - Wednesday Sign in. Mobe to location. PTW and JSA. Spot equipment and rig up lubricator. PT to 250 psi low and 3,000 psi high. RIH w/two guns. Gun #1 (B_29_LWR_1) 2-3/8" x 6' HC, 5 spf,60 deg phase and Gun #2 (B_29_2) 2-3/8" HC, 5 spf, 60 deg. Tie into PNL Schl, dated 25-Feb-2014. Set down 9,130'. Ran correlation log and send to town. Get ok to shoot both guns at same time due to being able to run 20' carrier and have 8' gap between gun 1 and 2. Spotted gun #1 from 8,998' to 9,004 ' and gun #2 from 8,990' to 8,986' w/86 psi/880K rate. After 5 min - 86 psi/954K, 10 min - 86 psi/920K and 15 min - 86 psi/934K. POOH. All shots fired and gun was wet. RIH w/#3 & #4 guns. # 3 gun is (B28_4) 2-3/8"x5' HC, 5 spf, 60 deg phase. Gun #4 (B28_3) 2-3/8" x 8' HC, 5 spf, 60 deg phase. Run correlation log over both guns, same tie-in log as above and send to town. Told to subtract 1' for Gun #3. Subtracted 1', spotted and attempted to fire gun from 8,930' to 8,935'and gun did not fire. POOH. Found shock sub wires broke and 2 others would work. Didn't run shock sub. RIH w/#3 & #4 guns. # 3 gun is (B28_4) 2-3/8" x 5' HC, 5 spf, 60 deg phase. Gun #4 (B28_3) 2-3/8" x 8' HC, 5 spf, 60 deg phase. Run correlation log over both guns, same tie-in log as above and send to town. Told to subtract 1' and shoot fr. 8,930' to 8,935'. Attempted to fire but gun did not go off. POOH. Manager came out. Changed out shooting Gama/CCL, detonator and rechecked tools. RIH w/#3 & #4 guns. # 3 gun is (B28_4) 2-3/8" x 5' HC, 5 spf, 60 deg phase. Gun #4 (B28_3) 2-3/8" x 8' HC, 5 spf, 60 deg phase. Run correlation log over both guns, same tie-in log as above and send to town. get ok to perf Gun #3 8,930'to 8,935'w/85 psi/951K, After 5min - 88 psi/1.298 mil, 10 min - 89 psi/1.307 mil and 15 min - 90 psi/1.338 mil. Got ok from town to shoot gun 4 from 8,883' to 8,891'. Fired gun w/90 psi/1.338 mil,. Got ok from town to shoot gun 4 from 8,883' to 8,891'. Fired gun w/90 psi/1.338 mil. After 5 min - 92 psi/1.387 Mil, 10 min - 92 psi/1.383 mil and 15 min - 90 psi/1.403 mil. POOH. All shots fired from Gun 3 but Gun 4 did not fire. Rig down lubricator and secure well. Turn well over to field. Yellowjacket is leaving equipment until tomorrow at no cost and see what well does. Spotted gun #1 from 8,998' to 9,004 ' and gun #2 from 8,990' to 8,986' w/86 psi/880K rate. A t Gun 4 did not fire. get ok to perf Gun #3 8,930'to 8,935'w/85 psi/951K, A All shots fired a Rig Start Date End Date E-Line 6/23/21 7/14/21 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name BCU-16RD 50-133-20554-01-00 207-125 07/14/2021 - Wednesday Sign in. Mobe to location. PTW and JSA. Spot equipment and rig up lubricator. Had o-ring failure first try. PT lubricator to 250 psi low and 3,000 psi high. Well flowing 1 million at 100 psi. Will perf with well flowing. All guns are with switches, (Run #1) 2-3/8" HC Gas perf guns, 5 spf, 60 deg phase RIH w/ Gun #1 from 8,883' to 8,890', Switch, Gun #2 from 8,841' to 8,846', Switch, and Gun #3 from 8,820' to 8,833'. Tie into Perf log. Run correlation log and send to town. Told to shift up 1'. Shifted up 1' spotted and fired Gun 1 from 8,883' to 8,890'with 106 psi/1,080 MCF. After 5 min - 107 psi/1,235 MCF, 10 min - 108 psi/1,175 MCF and. 15 min - 109 psi/1,153 MCF. Pull up but could not locate Gun #2 switch ID. Called town and decision was made to fire gun #3. Pulled up to gun #3 from 8,820' to 8,833' spotted and fired Gun #3 w/107 psi/1,139 MCF. After 5 min - 111 psi/1,328 MCF, 10 min - 112 psi/1,292 MCF and 15 min - 111 psi/1,255 MCF. POOH. All shots fired on guns #1 & #3. Gun #1 was dry/ #3 was covered thick muddy water. Replaced parts on gun #2 and RIH w/ 2- 3/8" x 5' HC, spf, 60 deg phase (Gun that didn't go off on Run #1 (gun #2) and tie into correlation log. Spot and fire gun from 8,841' to 8,846' w/111 psi/1,263 MCF. After 5 min - 111 psi/1,276 MCF, 10 min - 111 psi/1,267 MCF and 15 min - 111 psi/1,286 MCF. POOH. All shots fired/Gun was dry. RIH w/ Run #2 with switches, 2-3/8" HC Gas perf guns, 5 spf, 60 deg phase.Gun #4 from 8,768' to 8,776'. Switch. Gun #5 from 8,721' to 8,725' and Gun #6 from 8,700' to 8,714'. Tie into Perf Log. Run correlation log and send to town. Get ok to perf all zones. Gun 4, 68 w/109 psi/1,269MCF. After 5 min - 109 psi/1,260 MCF, 10 min - 109psi/1,248 and 15 min - 110 psi/1,235 MCF. Gun 5, 8,721'-8,725'' w/110 psi/1,243 MCF. After 5 min - 110 psi/1,304 MCF, 10 min - 109 psi/1,293 MCF and 15 min -109 psi/1,290 MCF. Gun 6, 8,700' to 8,714' w/109 psi/1,286MCF, 5 min - 110 psi/1,451 MCF, 10 min - 111 psi/1,400 MCF and 15 min - 111 psi/1,411 MCF. POOH. All shots fired and guns dry. Rig down lubricator and turn well over to field. Gun 6, 8,700' to 8,714' w/109 psi/1,286MCF, gun #3 from 8,820' to 8,833' spotted and fired Gun #3 w fired Gun 1 from 8,883'to 8,890'w .Gun #4 from 8,768' to 8,776' Gun 5, 8,721'-8,725''w/110 psi/1,243 Spot and fire gun from 8,841' to 8,846' w Gun 4, 68 w/109 psi/1,269MCF. Lease: State/Prov:Alaska Country:USA Angle/Perfs:16.5ºĺ20º 158' 21' 4/8/2014 7/27/2021 Well Name & Number:Beaver Creek Unit #16RD A - 028083 County or Parish:Kenai Peninsula Borough Angle @KOP and Depth:13.9º / 100 ft @ 5,004'Maximum Deviation:35º @ 2,121' Date Completed:10/11/07 Ground Level (above MSL):RKB (above GL): Revised By:Donna Ambruz Downhole Revision Date:Schematic Revision Date: BC-16RD Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Permit #:207-125 API #:50-133-20554-01-00 Property Des:A - 028083 KB:21' AGL (179' KB Elevation) X=317,399.46 Y=2,433,922.36 Lat:60°39' 29.546" N Long:151°01' 4.102" W Spud:05:00 hrs 9/27/2007 TD Reached:10/3/2007 Rig Released:10:00 hrs 10/12/07 Conductor 20" K-55 133 ppf Top Bottom MD 0' 103' TVD 0' 103' Surface Casing 13-3/8" K-55 68 ppf Top Bottom MD 0' 2,500' TVD 0' 2,285' Cmt w/ 670 sks of Type 1, Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' TVD 0' 4,639 Cmt original well w/ 209 Bbls 12.5 ppg of class G. Milled Sidetrack window 4,994' - 5,004' DPM Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 0' 9,402' TVD 0' 8,561' 8-1/2" hole Cmt w/ 1,720 sks (355 bbls) of 15.7 ppg, class G cmt Excape System Details - 7 Excape modules placed. -Red control line for top 6 modules. -Green control line for bottom module. Lower Beluga Perfs: MD (RKB) TVD Date B-20 - 8,176' - 8,192' 7,399' - 7,414' B-22 - 8,411' - 8,431' 7,619' - 7,637' Module 7 - 8,551' - 8,561' 7,750' - 7,759' B27-1 - 8,700' - 8,714' 7,888' - 7,901' 07/14/21 B27-2 - 8,721' - 8,725' 7,908' - 7,912' 07/14/21 B27-4 - 8,768' - 8,776' 7,952' - 7,960' 07/14/21 B28-3 - 8,820' - 8,833' 8,804' - 8,816' 07/14/21 B28-2 - 8,841' - 8,846' 8,024' - 8,029' 07/14/21 B28-3 - 8,883' - 8,890' 8,064' - 8,070' 07/14/21 B28-4 - 8,930' - 8,935' 8,106' - 8,111' 06/23/21 B29-2 - 8,986' - 8,990' 8,160' - 8,163' 06/23/21 B29-1 - 8,998' - 9,004' 8,171' - 8,177' 06/23/21 Module 6 - 8,606' - 8,616' 7,802' - 7,812' Module 5 - 9,011' - 9,021' 8,186' - 8,196' B-30 - 9,019' - 9,046' 8,194' - 8,219' 27 B-30 - 9,031' - 9,058' 8,205' - 8,231' 27 Module 4 - 9,058' - 9,068' 8,231' - 8,240' Module 3 - 9,147' - 9,157' 8,316' - 8,325' Module 2 - 9,192' - 9,202' 8,359' - 8,368' Module 1 - 9,302' - 9,312' 8,464' - 8,474' Top of Cement 4,200' MD CBL (10/26/07) 794' above 9-5/8" window Excape System Details - 4 Disappearing flappers (2-5) - 2 Reclosing flappers (6-7) - Mod 1 - no flapper - Ceramic flapper valves below each module as follows: Flappers MD (RKB): Module 7 - 8,571' Module 6 - 8,626' Module 5 - 9,030' Module 4 - 9,077' Module 3 - 9,166' Module 2 - 9,211' Module 1 - NA 9-5/8" Casing Window milled from 4,994' to 5,004' (Drill Pipe Measurement) Abandoned Sterling Perfs: MD TVD B3 5,676' - 8,686' 5,127' - 5,137' PBTD 9,402' MD 8,561' TVD TD 9,421' MD 8,580' TVD SCHEMATIC Tagged fill @ 9,247' KB (1/24/14) w/ 2.125" E-line Perf Guns Directional Data: KOP - 5,004' at 3.5 deg/100' build EOB - 5,592', 26.9 deg hole angle Drop - 5,719' @ 2.0 deg/100' Hold - 6,858', 16-20 deg hole angle to TD Tree cxn: 6-1/2" Otis B-22 B-30 B-20 B27- B28- B29 B27-1 - 8,700' - 8,714' 7,888' - 7,901' 07/14/21 B27-2 - 8,721' - 8,725' 7,908' - 7,912' 07/14/21 B27-4 - 8,768' - 8,776' 7,952' - 7,960' 07/14/21 B28-3 - 8,820' - 8,833' 8,804' - 8,816' 07/14/21 B28-2 - 8,841' - 8,846' 8,024' - 8,029' 07/14/21 B28-3 - 8,883' - 8,890' 8,064' - 8,070' 07/14/21 B28-4 - 8,930' - 8,935' 8,106' - 8,111' 06/23/21 B29-2 - 8,986' - 8,990' 8,160' - 8,163' 06/23/21 B29-1 -8 998'-9 004'8171'-8 177'06/23/21 ,, ,, B29 1 8,998 9,004 8,171 8,177 06/23/21 David Dempsey Hilcorp Alaska, LLC Sr. Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-5245 E-mail: david.dempsey2@hilcorp.com Please acknowledge receipt and return one copy of this transmittal. Received By: Date: Hilcorp North Slope, LLC Date: 08/03/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL BCU 16RD (PTD 207-125) FTP Folder Contents: Log Print Files and LAS Data Files: Please include current contact information if different from above. Received By: 08/03/2021 37' (6HW By Abby Bell at 10:19 am, Aug 03, 2021 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2.Operator Name:4.Current Well Class:5. Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): Casing Collapse Structural Conductor 1,500 psi Surface 1,950 psi Intermediate 3,090 psi Production 10,540 psi Liner Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13.Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15.Well Status after proposed work: Commencing Operations: OIL WINJ WDSPL Suspended 16. Verbal Approval: Date: GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Jake Flora Operations Manager Contact Email: Contact Phone: 777-8442 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: June 12, 2021 3-1/2" 9,402' Perforation Depth MD (ft): 5,188' See Attached Schematic 9,381' 8,561'3-1/2" 20" 13-3/8" 82' 9-5/8"5,167' 2,479' 3,060 psi 3,450 psi 103' 2,285' 4,639' 103' 2,500' 9.3# / L-80 TVD Burst 9,402' 10,160 psi MD 5,750 psi Length Size CO 237 Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 FEDA028083 207-125 50-133-20554-01 Beaver Creek Unit (BCU) #16RD Beaver Creek / Beluga Gas Pool COMMISSION USE ONLY Authorized Name: Tubing Grade: Tubing MD (ft): See Attached Schematic jake.flora@hilcorp.com 309 psi Perforation Depth TVD (ft): Tubing Size: Perforate Repair Wepair Well Exploratory Stratigraphic Development Service BOP TestMechanical Integrity Test Location Clearance No No Wellbore schematic Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 8:00 am, Jun 01, 2021 321-267 Digitally signed by Taylor Wellman (2143) DN: cn=Taylor Wellman (2143), ou=Users Date: 2021.05.28 14:33:02 -08'00' Taylor Wellman (2143) DSR-6/1/21BJM 6/11/21 10-404 DLB 06/01/2021 X dts 6/14/2021 JLC 6/14/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.06.14 11:18:42 -08'00' RBDMS HEW 6/16/2021 Well Prognosis Well: BCU-16RD Date: 05/28/2021 Well Name: BCU-16RD API Number: 50-133-20554-01 Current Status: Producing Gas Well Leg: N/A Estimated Start Date: June 12th, 2021 Rig: N/A (E-line) Reg. Approval Req’d? 403 Date Reg. Approval Rec’vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-125 First Call Engineer: Jake Flora (907) 777-8442 (O) (720) 988-5375 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (O) (985) 867-0665 (M) AFE Number: Maximum Expected BHP: ~ 1126 psi @ ±8,171’ TVD (Based on RFT Data) Max. Potential Surface Pressure: ~ 309 psi (Based on offset RFT data minus a gas gradient to surface (0.10 psi/ft)) Well Status BCU-16RD is currently a Lower Beluga Excape well gas producer currently producing 780 MCFD with little to no water. Brief Well Summary BCU-16 re-drilled and completed as an Excape well in 2007 targeting the Beluga formation. The well came online making just over 5.5 MMCFD with little to no water. The well cum’d just over 7.5 BCF just before the Lower Beluga 20, 22 and 30 were perforated which added 1.5 MMCFD. The well has decline from 3.5 MMCFD @ 215 psi FWHP to a current rate of 780 MCFD @ 85 psi. BCU-16RD has cum’d 11.72 BCF to date. The objective of this work is to add the Beluga sands thru tbg. RIH w/ perf guns on Eline and selectively perforate while flowing; evaluating each prior to moving to next interval. Notes Regarding Wellbore Condition 11/28/20 Drift with 2.5” DDB to 9226’ KB, recover 2” sandy mud E-line Procedure: 1. RU E-Line, PT Lubricator 250 low/3000 psi high. With well flowing, perforate below zones from the bottom up: Sand TOP MD BTM MD Total TOP TVD BTM TVD LWR_BELUGA* ±8,260’ ±8,267 7 ±7,474’ ±7,480’ B21* ±8,272’ ±8,280 8 ±7,484’ ±7,492’ B25_Upper ±8,578’ ±8,587 9 ±7,773’ ±7,781’ B25_Mid ±8,594’ ±8,601 7 ±7,788’ ±7,794’ B27_1 ±8,700’ ±8,714 14 ±7,888’ ±7,901’ B27_2 ±8,721’ ±8,725 4 ±7,908’ ±7,912’ B27_4 ±8,768’ ±8,776 8 ±7,952’ ±7,960’ B28_2 ±8,841’ ±8,846 5 ±8,022’ ±8,026’ B28_3 ±8,883’ ±8,890 7 ±8,062’ ±8,068’ B28_4* ±8,929’ ±8,935 6 ±8,105’ ±8,111’ B_29_2 ±8,987’ ±8,990 3 ±8,161’ ±8,163’ B_29_LWR_1 ±8,998’ ±9,003 5 ±8,171’ ±8,176’ Well Prognosis Well: BCU-16RD Date: 05/28/2021 a. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. b. Use GR/CCL to correlate against Open Hole Log provided by Geologist. Send the correlation pass to the following for confirmation. Reservoir Engineer Trudi Hallett 907.301.6657 Geologist Ben Siks 907.229.0865 2. POOH and RD E-line. 3. Turn well over to production. E-Line Procedure (Contingency) 1. If these zones produce sand and/or water and need to be isolated: 2. MIRU E-Line and pressure control equipment. PT lubricator to 250 psi Low / 3,000 psi High. 3. RIH and set 4-1/2” CIBP (or tubing patch) and dump 35’ of cement on top of the plug. Attachments: 1. Actual Schematic 2. Proposed Schematic Lease: State/Prov:Alaska Country:USA Angle/Perfs:16.5ºĺ20º 158' 21' 4/8/2014 5/7/2014 Well Name & Number:Beaver Creek Unit #16RD A - 028083 County or Parish:Kenai Peninsula Borough Angle @KOP and Depth:13.9º / 100 ft @ 5,004'Maximum Deviation:35º @ 2,121' Date Completed:10/11/07 Ground Level (above MSL):RKB (above GL): Revised By:Stan Porhola Downhole Revision Date:Schematic Revision Date: BC-16RD Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Permit #: 207-125 API #: 50-133-20554-01-00 Property Des: A - 028083 KB: 21' AGL (179' KB Elevation) X= 317,399.46 Y= 2,433,922.36 Lat: 60° 39' 29.546" N Long: 151° 01' 4.102" W Spud: 05:00 hrs 9/27/2007 TD Reached: 10/3/2007 Rig Released: 10:00 hrs 10/12/07 Conductor 20" K-55 133 ppf Top Bottom MD 0' 103' TVD 0' 103' Surface Casing 13-3/8" K-55 68 ppf Top Bottom MD 0' 2,500' TVD 0' 2,285' Cmt w/ 670 sks of Type 1, Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' TVD 0' 4,639 Cmt original well w/ 209 Bbls 12.5 ppg of class G. Milled Sidetrack window 4,994' - 5,004' DPM Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 0' 9,402' TVD 0' 8,561' 8-1/2" hole Cmt w/ 1,720 sks (355 bbls) of 15.7 ppg, class G cmt Excape System Details - 7 Excape modules placed. - Red control line for top 6 modules. - Green control line for bottom module. - Disappearing flapper valves below modules 2 through 5. - Reclosing flapper valves below modules 6 & 7. Lower Beluga Perfs: MD (RKB) TVD LB-20 - 8,176' - 8,192' 7,399' - 7,414' LB-22 - 8,411' - 8,431' 7,619' - 7,637' Module 7 - 8,551' - 8,561' 7,750' - 7,759' Module 6 - 8,606' - 8,616' 7,802' - 7,812' Module 5 - 9,011' - 9,021' 8,186' - 8,196' LB-30 - 9,019' - 9,046' 8,194' - 8,219' LB-30 - 9,031' - 9,058' 8,205' - 8,231' Module 4 - 9,058' - 9,068' 8,231' - 8,240' Module 3 - 9,147' - 9,157' 8,316' - 8,325' Module 2 - 9,192' - 9,202' 8,359' - 8,368' Module 1 - 9,302' - 9,312' 8,464' - 8,474' LB-20 @ 12 spf LB-22 @ 16 spf LB-30 @ 6/12/6 spf Modules @ 6 spf Top of Cement 4,200' MD CBL (10/26/07) 794' above 9-5/8" window Excape System Details - 4 Disappearing flappers (2-5) - 2 Reclosing flappers (6-7) - Mod 1 - no flapper - Ceramic flapper valves below each module as follows: Flappers MD (RKB): Module 7 - 8,571' Module 6 - 8,626' Module 5 - 9,030' Module 4 - 9,077' Module 3 - 9,166' Module 2 - 9,211' Module 1 - NA 9-5/8" Casing Window milled from 4,994' to 5,004' (Drill Pipe Measurement) Abandoned Sterling Perfs: MD TVD B3 5,676' - 8,686' 5,127' - 5,137' PBTD 9,402' MD 8,561' TVD TD 9,421' MD 8,580' TVD ACTUAL SCHEMATIC Tagged fill @ 9,247' KB (1/24/14) w/ 2.125" E-line Perf Guns Directional Data: KOP - 5,004' at 3.5 deg/100' build EOB - 5,592', 26.9 deg hole angle Drop - 5,719' @ 2.0 deg/100' Hold - 6,858', 16-20 deg hole angle to TD Tree cxn: 6-1/2" Otis LB-22 LB-30 LB-20 Lease: State/Prov:Alaska Country:USA Angle/Perfs:16.5ºĺ20º 158' 21' 4/8/2014 5/27/2021 Well Name & Number:Beaver Creek Unit #16RD A - 028083 County or Parish:Kenai Peninsula Borough Angle @KOP and Depth:13.9º / 100 ft @ 5,004'Maximum Deviation:35º @ 2,121' Date Completed:10/11/07 Ground Level (above MSL): RKB (above GL): Revised By:T. Hallett Downhole Revision Date: Schematic Revision Date: BC-16RD Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Permit #:207-125 API #:50-133-20554-01-00 Property Des:A - 028083 KB:21' AGL (179' KB Elevation) X=317,399.46 Y=2,433,922.36 Lat:60° 39' 29.546" N Long:151° 01' 4.102" W Spud:05:00 hrs 9/27/2007 TD Reached:10/3/2007 Rig Released:10:00 hrs 10/12/07 Conductor 20" K-55 133 ppf Top Bottom MD 0' 103' TVD 0' 103' Surface Casing 13-3/8" K-55 68 ppf Top Bottom MD 0' 2,500' TVD 0' 2,285' Cmt w/ 670 sks of Type 1, Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' TVD 0' 4,639 Cmt original well w/ 209 Bbls 12.5 ppg of class G. Milled Sidetrack window 4,994' - 5,004' DPM Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 0' 9,402' TVD 0' 8,561' 8-1/2" hole Cmt w/ 1,720 sks (355 bbls) of 15.7 ppg, class G cmt Excape System Details - 7 Excape modules placed. -Red control line for top 6 modules. -Green control line for bottom module. - Disappearing flapper valves below modules 2 through 5. - Reclosing flapper valves below modules 6 & 7. Proposed Lower Beluga Perfs: MD (RKB) TVD LB-20 - 8,176' - 8,192' 7,399' - 7,414' LB-22 - 8,411' - 8,431' 7,619' - 7,637' Module 7 - 8,551' - 8,561' 7,750' - 7,759' Module 6 - 8,606' - 8,616' 7,802' - 7,812' Module 5 - 9,011' - 9,021' 8,186' - 8,196' LB-30 - 9,019' - 9,046' 8,194' - 8,219' LB-30 - 9,031' - 9,058' 8,205' - 8,231' Module 4 - 9,058' - 9,068' 8,231' - 8,240' Module 3 - 9,147' - 9,157' 8,316' - 8,325' Module 2 - 9,192' - 9,202' 8,359' - 8,368' Module 1 - 9,302' - 9,312' 8,464' - 8,474' Top of Cement 4,200' MD CBL (10/26/07) 794' above 9-5/8" window Excape System Details - 4 Disappearing flappers (2-5) - 2 Reclosing flappers (6-7) - Mod 1 - no flapper - Ceramic flapper valves below each module as follows: Flappers MD (RKB): Module 7 - 8,571' Module 6 - 8,626' Module 5 - 9,030' Module 4 - 9,077' Module 3 - 9,166' Module 2 - 9,211' Module 1 - NA 9-5/8" Casing Window milled from 4,994' to 5,004' (Drill Pipe Measurement) Abandoned Sterling Perfs: MD TVD B3 5,676' - 8,686' 5,127' - 5,137' PBTD 9,402' MD 8,561' TVD TD 9,421' MD 8,580' TVD PROPOSED Tagged fill @ 9,247' KB (1/24/14) w/ 2.125" E-line Perf Guns Directional Data: KOP - 5,004' at 3.5 deg/100' build EOB - 5,592', 26.9 deg hole angle Drop - 5,719' @ 2.0 deg/100' Hold - 6,858', 16-20 deg hole angle to TD Tree cxn: 6-1/2" Otis LB-22 LB-30 LB-20 • • Image Projecfi U11e11 HisfiQry File ~OVer P~Ige XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. p2 ®~ - 1~, ~ Well History File Identifier Organizing (aone> RE AN Color Items: Greyscale Items: ^ Poor Quality Originals: ^ Other: ^ Two-sided III II1I1I I1 III II ~~) DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: a~s~a~~e~e, iiiiuiiiiiiiiiuu OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: /s/ ~ Project Proofing III (I'l II I (III I I III BY: Maria Date: D !s/ Scanning Preparation ~_ x 30 = (tJ ~ + ~ =TOTAL PAGES~~ (Count does not include cover sheet) ~/~ BY: Maria Date: 1 1 / ~ ~ l !7 Q~ /s/ r ~ Production Scanning Stage 1 Page Count from Scanned File: _~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: _~YES NO BY: Maria Date: r a f' ~j ~ g lsl Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II (II'I II I II II I (III ReScanned III IIIIIIIIIII IIIII BY: Maria Date: /s/ Comments about this file: a~„„~~~~~ iiiumuiiiuu P 10!6/2005 Well History File Cover Page.doc STATE OF ALASKA RECEIVED AL jk OIL AND GAS CONSERVATION COMMISSION 1 REPORT OF SUNDRY WELL OPERATIONS MAY 0 7 2014 1.Operations Abandon LJ Repair Well U Plug Perforations U Perforate U Other U AraGGa Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program El Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development Q Exploratory ❑ s 207-125 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic Service ❑ 6.API Number: Anchorage,Alaska 99503 • 50-133-20554-01 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA028083 • ► Beaver Creek Unit(BCU)16RD 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A \ Beaver Creek/Sterling Pool 11.Present Well Condition Summary: Total Depth measured r 9,421 feet Plugs measured N/A feet true vertical 8,580 feet Junk measured N/A feet Effective Depth measured 9,402 feet Packer measured N/A feet true vertical 8,561 feet true vertical N/A feet Casing Length Size MD ND Burst Collapse Structural Conductor 103' 20" 103' 103' 3,060 psi 1,500 psi Surface 2,500' 13-3/8" 2,500' 2,285' 3,450 psi 1,950 psi Intermediate 5,188' 9-5/8" 5,188' 4,639' 5,750 psi 3,090 psi Production Liner Perforation depth Measured depth See Attached Schematic 9 True Vertical depth See Attached Schematic BANNED MAY 2 20'14 Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 9,402'MD 8,561'ND Packers and SSSV(type,measured and true vertical depth) N/A;N/A N/A;N/A N/A;N/A N/A;N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A RBDMSN MAY 17 2014 Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 1962 0 0 180 Subsequent to operation: 0 3548 1 0 217 . 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development❑s st Service 0 Stratigraphic 0 Daily Report of Well Operations X 16.Well Status after work: Oil ❑ . Gas 0 WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 314-089 Contact Stan Porhola Email sDorholata'�.hilcorD.com Printed Name Stan Porhola Title Operations Engineer Signaturec .4t Sta907-777-8412 Date S 7/A1 2,..- 5 -ZC - /Li Form 10-404 Revised 10/2012 Submit Original Only - .ply 11 Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-16RD 50-133-20554-01 207-125 3/4/14 4/8/14 Daily Operations: 03/04/2014-Tuesday RU SLB. PT Lubricator to 250/3,000 psi -test OK. RIH and perforate LB-20 sand 2 runs for 12 spf(8,176'-8,192' based on SLB PNL-GR-CCL Log 2/25/14). Perforate using 2.0" Power Jet Omega. Saw pressure increase from 280 psi to 350 psi after 1st gun. Rig down SLB. Turn well over to production. 04/08/2014-Tuesday MIRU Schlumberger E-line. Rig up. PT Lubricator 250/1,500 psi -test OK. PU 20' of 2.0" PowerJet Nova @ 6 spf. RIH and correlate using GR/CCL. Correlate to Tie-in log PNL-GR-CCL dated 2-25-14. FTP = 225 psi. Perforate 8,411'-8,431'...No change in tubing pressure. POOH. Rig down. Move unit to Swanson River. /-6 ZZ . _,...._ .:. II BC-1 6RD ACTUAL Pada SCHEMATIC Hilcorp Alaska,LLC 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Conductor Permit#: 207-125 20" K-55 133 ppf API#: 50-133-20554-01-00 Tom Bottom MD 0' 110303'' Property Des: A-028083 TVD 0• 103' KB: 21'AGL (179'KB Elevation) li X= 317,399.46 Surface Casing Y= 2,433,922.36 13-3/8" K-55 68 ppf Ll Lat: 60° 39' 29.546" N Top Bottom Long: 151° 01' 4.102" W MD TVD 00 2' 2,285285 ' Spud: 05:00 hrs 9/27/2007 Cmt w/670 sks of Type 1, TD Reached: 10/3/2007 Rig Released: 10:00 hrs 10/12/07 Intermediate Casing - 9-5/8" L-80 40 ppf "4 . Top Bottom MD 0' 5,188' i TVD l 4,639 Tree cxn:6-1/2"Otis *, Cmt original well w/209 Bbls 12.5 9 ppg of class G.Milled Sidetrack Top of Cement 4,200'MD ' 1! \ I window 4,994'-5,004'DPM CBL(10/26/07) 4 ' 794'above 9-5/8"windowProduction Tubing 31/2" L-80 9.3 ppf EUE 8RD TOP Bottom 9-5/8" Casing Window MD o' 84or �.t', TVD 0' 8,561' milled from 4,994'to 5,004' :.t (Drill Pipe Measurement) 8-1/2"hole w/1,720 sks(355 bbls)of ppg,class G cmt Excape System Details Excape System Details -4 Disappearing flappers(2-5) - 7 Excape modules placed. -2 Reclosing flappers(6-7) I' - control line for top 6 modules. -Mod 1 -no flapper - - .' -green control line for bottom module. Ceramic flapper valves below ' LB-20 • .. -Disappearing flapper valves below modules each module as follows: •;* : 2 through 5. Flappers MD(RKB): I -Reclosing flapper valves below modules 6&7. Module 7 - 8,571' - ., ' . Module 6 - 8,626' j' LB-22 Lower Beluga Perfs: Module 5 9,030' , .y - MD(RKB) TVD Module 4 - 9,077' 1 = LB-20 - 8,176'-8,192' 7,399'-7,414' Module 3 - 9,166' k ,. ' LB-22 - 8,411'-8,431' 7,619'-7,637' v Module 2 - 9,211' = . = Module 7 - 8,551'-8,561' 7,750'-7,759' Module 1 - NA 9' "� 1 � Module 6 - 8,606'-8,616' 7,802'-7,812' 'V `';., Module 5 - 9,011'-9,021' 8,186'-8,196' , ' Directional Data: - = 11 == LB-30 - 9,019'-9,046' 8,194'-8,219' KOP-5,004'at 3.5 deg/100'build - • LB-30 - 9,031'-9,058' 8,205'-8,231 EOB-5,592',26.9 deg hole angle ' ' ; _ = Module 4 - 9,058'-9,068' 8,231'-8,240' Drop-5,719'@ 2.0 deg/100' I' = Module 3 - 9,147'-9,157' 8,316'-8,325' Hold 6,858',16-20 deg hole angle to TDLB-30 i • Module 2 - 9,192'-9,202' 8,359' 8,368' I = Module 1 - 9,302'-9,312' 8,464'-8,474' - - = LB-20 @ 12 spf H - LB-22© 16 spf 0 - 6/12/6 spf t Ili a r Modules @ 6 spf Abandoned Sterling Perfs. ; e1 e• MD TVD = = in Tagged fill @ 9,247'KB(1/24/14) B3 5,676'-8,686' 5,127'-5,137' a sea I i , w/2.125"E-line Perf Guns ,j ,. '': TD PBTD 9,421'MD 9,402'MD 8,580'ND 8,561'TVD Well Name&Number: Beaver Creek Unit#16RD Lease: A-028083 County or Parish. Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth. 13.9°/100 ft @ 5,004' Angle/Perfs: 16.5°-.20° Maximum Deviation: 35°@ 2,121' Date Completed: 10/11/07 Ground Level(above MSL) 158' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date 4/8/2014 Schematic Revision Date 5/7/2014 ®r' \\V/7,, SHE STATE ��_� � rncv_ 21„ � ', f � 333 West Seventh Avenue t:6,09GOVERNOR SEAN PARNEI,I Anchorage, Alaska 99501-3572 Main: 907.279.1 433 Fax 907.276 7542 Stan Porhola Operations Engineer pED J U{ 2 2 2314 Hilcorp Alaska, LLC _ 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Beaver Creek Field, Beluga Gas Pool, BCU#16RD Sundry Number: 314-089 Dear Mr. Porhola: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy :. Foerster Chair JI DATED this day of February, 2014. Encl. • RECEWED STATE OF ALASKA FEB 18 2014 ALASKA OIL AND GAS CONSERVATION COMMISSION ZI Lf14„ APPLICATION FOR SUNDRY APPROVALS AOGCC 20 MC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well p Change Approved Program p Suspend ❑ Plug Perforations ❑ Perforate Q ' Pull Tubing ❑ lime Extension ❑ Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Atter Casing ❑ Other. ❑ 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5. Permit to Drill Number. • Exploratory ❑ Development Q • 207-125 . 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic ❑ Service ❑ 6.API Number. Anchorage,Alaska 99503 50-133-20554-01 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 237 ' Beaver Creek Unit(BCU)#16RD - Will planned perforations require a spacing exception? Yes ❑ No ❑✓ 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028083 • Beaver Creek/Beluga Gas Pool • 11• PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 9,421' • 8,580' ' 9,402' 8,561' N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 82' 20" 103' 103' 3,060 psi 1,500 psi Surface 2,479' 13-3/8" 2,500' 2,285' 3,450 psi 1,950 psi Intermediate 5,167' 9-5/8" 5,188' 4,639' 5,750 psi 3,090 psi Production 9,381' 3-1/2" 9,402' 8,561' 10,160 psi 10,540 psi Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3#/L-80 9,402' Packers and SSSV Type: N/A;N/A Packers and SSSV MD(ft)and TVD(ft): N/A;N/A 12.Attachments: Description Summary of Proposal ❑✓ 13.Well Class after proposed work: Detailed Operations Program Lf BOP Sketch U Exploratory U Stratigraphic LI Development U 'Service U 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 02/22/14 Oil ❑ Gas Q • WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Phone: 907-777-8412 Email sporhola@hilcorp.com Printed Name Stan Porhola Title Operations Engineer Signature 446c, O v✓'1 Phone 907-777-8412 Date /1 /tf COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number 3\`—t— oC� Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: cil RBDM MAY 1 1 1014 Spacing Exception Required? Yes ❑ No ill Subsequent Form Required: r 11— Li el APPROVED BY Approved by: a_.7/ ,1r COMMISSIONER THE COMMISSION Date:c�0��/_/V ,(.k /IL- 2•2-o• / Submit Form and \71 ` 1 �3 i • 1, tl L Approved application is valid for 12 months from the date of alpproval. Attachments in Duplicate '11 ,.V v Well Prognosis Well: BCU-16RD Hilcorp Alaska,LLI Date:2/18/2014 Well Name: BCU-16RD API Number: 50-133-20554-01 Current Status: Producing Gas Well Leg: N/A Estimated Start Date: February 22"d, 2014 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-125 First Call Engineer: Stan Porhola (907)777-8412 (0) (907)331-8228(M) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907)229-4824(M) AFE Number: Current Bottom Hole Pressure: — 1,475 psi @ 8,368' TVD (Based on flowing survey July 2013 run to 9,221' MD) Maximum Expected BHP: — 1,475 psi @ 8,368' ND (Based on flowing survey July 2013 run to 9,221' MD) Max. Allowable Surface Pressure: —638 psi (Based on actual reservoir conditions and gas gradient to surface(0.10psi/ft) Brief Well Summary Beaver Creek Unit#16RD was drilled as a sidetrack EXCAPE monobore completion in 2007 to target gas sands in the lower Beluga formation. All 7 EXCAPE modules were perforated and fracture stimulated. Perforations were added in the Lower Beluga LB-22 and LB-30 sand with minimal results.The well is currently on production making around 2.00 MMCF/D with no water. Notes Regarding Wellbore Condition • Well is currently flowing at 2.00 MMCF/D with a 175 psi flowing tubing pressure. • Wellbore deviation at the perforations is less than 20 degrees. Maximum deviation is 35 degrees. OBJECTIVE OF WORKOVER Add new perfs in the LB-20 Lower Beluga sand. 1 E-line Procedure: 1. , PT to 3, 0 p0 2. RUMIRU 2.0E-line"6 spf PJ Omegalubricator HC wireline00 gunssiHi (will25useLow.2 each 16'guns). 3. RIH and perforate Lower Beluga (LB-20) interval from 8,176'-8,192' (2 runs,total of 12 spf). a. Proposed perfs shown on the proposed schematic in red font. b. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. c. Correlate using Expro Cement Bond Log dated 10/26/07(Tie-in log depth is 8,176'-8,192'). d. No Gamma/Pressure/Temperature tool. e. Record tubing pressures before and after each perforating run. 4. RD E-line. 5. Turn well over to production. Attachments: 1. As-built Schematic 2. Proposed Schematic .r BC-1 6RD ACTUAL Pad 3 SCHEMATIC Hilcorp Alaska,LLC 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Conductor Permit#: 207-125 20" K-55 133 ppf API#: 50-133-20554-01-00 Tom Bottom MD 0' 103' Property Des: A-028083 ', '- TVD 0' 103' KB: 21'AGL (179'KB Elevation) ' X= 317,399.46 ' Surface Casing Y= 2,433,922.36 L [ 13-319" K-55 68 ppf Lat: 60° 39' 29.546" N Tom Bottom Long: 151° 01' 4.102" W MD 0' 2,500' TVD 0' 2,285' Spud: 05:00 hrs 9/27/2007 Cmtw/670 sks of Type 1, TD Reached: 10/3/2007 Rig Released: 10:00 hrs 10/12/07 ' Intermediate Casing 9-518" L-80 40 ppf Top Bottom MD 0' 5,188' Tree cxn:6-1/2"Otis TVD 4,639 Cmt original well w/209 Bbls 12.5 Top of Cement 4,200'MD _ ppg of class G.Milled Sidetrack ++ window 4,994'-5,004'DPM , CBL(10/26/07) 794'above 9-5/8"window Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD - ` Top Bottom 9-5/8" Casing Window TVD o' a ssi' milled from 4,994'to 5,004' %, ;!° ,, a-vr'hole Cmt w/1,720 sks(355 bbls)of (Drill Pipe Measurement) _" ,, 15.7 ppg,class G cmt Excape System Details J _ \\ -4 Disappearing flappers(2-5) 1 I -2 Reclosing flappers(6-7) • " Mod 1 -no flapper Excape System Details - 7 Excape modules placed. Ceramic flapper valves below -Red control line for top 6 modules. each module as follows: ""k � -Green control line for bottom module. Flappers MD(RKB): ► ` . . �` Module 7 - 8,571' }. + •;-.4-1.,' , .- ;. Disappearing flapper valves below modules Module 6 - 8,626' ,% " •' r,` LB-22 2 through 5. • + . + a 1 1 -Reclosing flapper valves below modules 6&7. Module 5 - 9,030' �. s -Jr.:. - Module 4 - 9,077' ?0 ,,'' .,-7. _ Module 3 - 9,166' * `Y 0 -,-- M Lower Beluga Perfs: Ds(RKB) ND Module 2 - 9,211' �� _' s LB-22 - 8,411'-8,431' 7,619'-7,637' f I >c Module 1 - NA R+y, -N ' -,y,,. ,,-r-- Module 7 - 8,551'-8,561' 7,750'-7,759' .'i, I '' -' y- Module 6 - 8,606'-8,616' 7,802'-7,812' Directional Data: "�"` = I�~ - Module 5 - 9,011'-9,021' 8,186'-8,196' KOP-5,004'at 3.5 deg/100'build `+• -s. ,_ LB-30 - 9,019'-9,046' 8,194'-8,219' EOB-5,592',26.9 deg hole angle ' s I = LB-30 - 9,031'-9,058' 8,205'-8,231 Drop-5,719'@ 2.0 deg/100' = , , Module 4 - 9,058'-9,068' 8,231'-8,240' Hold-6,858',16-20 deg hole angle to TDLB-30 ' Module 3 - 9,147'-9,157' 8,316'-8,325' ��it.m �' �� = Module 2 - 9,192'-9,202' 8,359'-8,368' r; - Module 1 - 9,302'-9,312' 8,464'-8,474' = 1, _ = LB-22 @ 10 spf LB-30 @ 6/12/6 spf . H ' ......---44 77- ....=_- ___ Modules @ 6 spf Abandoned Sterling Perfs: Tagged fill @ 9,247'KB(1/24/14) B3 5,676-8,686' 5,127'- _ 11.=5,137' 9 w/2.125"E-line Perf Guns TD PBTD j ,, .. ,'. %" "'L 9,421'MD 9,402'MD 8,580'TVD 8,561'TVD Well Name&Number: Beaver Creek Unit#16RD _ Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 13.9°/100 ft @ 5,004' Angle/Perfs: 16.5°-.20° Maximum Deviation: 35°@ 2,121' Date Completed: 10/11/07 Ground Level(above MSL) 158' RKB(above GL): 21' Revised By. Stan Porhola Downhole Revision Date: 1/24/2014 Schematic Revision Date 1/27/2014 __ _ . BC-1 6RD PROPOSED Pada SCHEMATIC Hilcorp Alaska,LLC 1,269' FNL, 1,587' FWL :S: ec.34, T7N, R10W, S.M. Conductor Permit#: 207-125 API#: 50-133-20554-01-00 Property Des: A-028083 20" K-55 133 ppf Too Bottom MD 0' 103' TVD 0' 103' KB: 21'AGL (179'KB Elevation) X= 317,399.46 Surface Casing Y= 2,433,922.36 I13-3/8" K-5568 ppf Lat: 60° 39' 29.546" N IQP Bottom Long: 151° 01' 4.102" W MD o' 2,500' TVD 0' 2,285' Spud: 05:00 hrs 9/27/2007 Cmt wl670 sks of Type 1, TD Reached: 10/3/2007 Rig Released: 10:00 hrs 10/12/07 • Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' Tree cxn:6-1/2"Otis TVD 0' 4,639 hd Cmt original well w/209 Bbls 12.5 ppg of class G.Milled Sidetrack window 4,994'-5,004'DPM Top of Cement 4,200'MD \ ) CBL(10/26/07) 794'above 9-5/8"window \ Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom 9-5/8"Casing Window MD o' 6,402' TVD 0' 8,561' I milled from 4,994'to 5,004' s-1/2 hole Cmt w/1,720 sks(355 bbls)of (Drill Pipe Measurement) 15.7 ppg,class G cmt Excape System Details k" Excape System Details -4 Disappearing flappers(2-5) f \\ - 7 Excape modules placed. 14 i 2 Reclosing flappers(6-7) Red control line for top 6 modules. Mod 1 -no flapperreen control line for bottom module. Ceramic flapper valves below LB-20 --I-- -Disappearing flapper valves below modules each module as follows: ' ;,ri ': ,,'r' , '' 2 through 5. Flappers MD(RKB): Module 7 - 8,571' Reclosing flapper valves below modules 6&7. Module 6 8,626' LB-22 Lower Beluga Perfs: Module 5 - 9,030' MD(RKB) TVD Module 4 - 9,077' = I! = I.3-20 - 8,176'-8,192' 7.399' / Module 3 - 9,166' LB-22 - 8,411'-8,431' 7,619'-7,637' Module 2 - 9,211' Module 7 - 8,551'-8,561' 7,750'-7,759' Module 1 - NA - ( _ Module 6 - 8,606'-8,616' 7,802'-7,812' 4Module 5 - 9,011' 9,021' 8,186'-8,196' I LB-30 - 9,019'-9,046' 8,194'-8,219' Directional Data: _ i - -- I~ LB-30 9,031'-9,058' 8,205'-8,231 KOP-5,004'at 3.5 deg/100'build EOB-5,592',26.9 deg hole angle ' , = = Module 4 - 9,058' 9,068' 8,231'-8,240' Drop-5,719'@ 2.0 deg/100' I = @ Module 3 - 9,147' 9,157' 8,316'-8,325' Hold-6,858',16-20 deg hole angle to TD LB-30 Module 2 - 9,192'-9,202' 8,359' 8,368' ... L i~ s Module 1 - 9,302' 9,312' 8,464'-8,474' U _ .�. ate, y.-- = 0 @ 12 spf = I = LB-22 @ 10 spf LB-30 @ 6/12/6 spf �`� _11., -'T Modules @ 6 spf i Abandoned Sterling Perls: S. T Tagged fill @ 9,247'KB(1/24/14) I MD ND ' B3 5,676'-8,686' 5,127'-5,137' a w/2.125"E-line Perf Guns J . . 'L TD PBTD 9,421' MD 9,402'MD 8,580' TVD 8,561'TVD Well Name&Number: Beaver Creek Unit#16RD Lease: A-028083 County or Parish• Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 13.9°/100 ft @ 5,004' Angle/Perfs: 16.5°-.20° Maximum Deviation: 35°@ 2,121' Date Completed: 10/11/07 Ground Level(above MSL) 158' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date Proposed Schematic Revision Date: 2/17/2014 r • Davies, Stephen F (DOA) From: Stan Porhola [sporhola@hilcorp.com] Sent: Thursday, February 20, 2014 10:22 AM To: Davies, Stephen F (DOA) Subject: RE: BCU 13 and BCU 16RD: Planned Perforations a,).). j- Steve, Current wells on production from Beaver Creek in the Beluga Gas Pool: BCU-12 BCU-13 BCU-16RD BCU-18 BCU-13 => BCU-12 is 2,300' BCU-13 => BCU-16RD is 1,600' BCU-13 => BCU-18 is 3,100' BCU-13 => BCU-09 is 1,420' (closest well open to Beluga not producing but open in Beluga) BCU-16RD=> BCU-12 is 3,300' BCU-16RD=> BCU-13 is 1,600' BCU-16RD=> BCU-18 is 4,650' BCU-16RD=> BCU-09 is 1,750' (closest well open to Beluga not producing but open in Beluga) Regards, Stan Porhola Operations Engineer North Kenai Asset Team Hilcorp Alaska,LLC sporhola@hilcorp.com Office: (907) 777-8412 Mobile: (907) 33143228 From: Davies, Stephen F (DOA) [mailto:steve.davies(aalaska.gov] Sent: Tuesday, February 18, 2014 2:35 PM To: Stan Porhola Subject: BCU 13 and BCU 16RD: Planned Perforations Stan, What are the distances from the planned perforation intervals in BCU 13 and BCU 16RD and perorations that are, or will be, open to the same gas pool in the closest wells? Thanks, Steve Davies AOGCC 907-793-1224 1 STATE OF ALASKA Ab-,—.,A OIL AND GAS CONSERVATION COMMISSION RECEIVED REPORT OF SUNDRY WELL OPERATIONS JAN 2 7 2014 1.Operations Abandon U Repair Well U Plug Perforations U Perforate U Other U Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ AOGCC Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development 2 Exploratory❑ 4 207-125 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99504 11' 50-133-20554-01 7.Property Designation(Lease Number): 8.Well Name and Number: t FEDA028083 • Beaver Creek Unit(BCU)16RD 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): • N/A Beaver Creek/Sterling Pool 11.Present Well Condition Summary: Total Depth measured a. 9,421 feet Plugs measured N/A feet true vertical 8,580 feet Junk measured N/A feet Effective Depth measured 9,402 feet Packer measured N/A feet true vertical 8,561 feet true vertical N/A feet Casing Length Size MD ND Burst Collapse Structural 103' 20" 103' 103' 3,060 psi 1,500 psi Conductor Surface 2,500' 13-3/8" 2,500' 2,285' 3,450 psi 1,950 psi Intermediate Production 5,188' 9-5/8" 5,188' 4,639' 5,750 psi 3,090 psi Liner Perforation depth Measured depth See Attached Schematic �/�� 2 True Vertical depth See Attached Schematic SCANNED MAY 9 20114 Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 9,402'MD 8,561'ND Packers and SSSV(type,measured and true vertical depth) N/A;N/A N/A;N/A N/A;N/A N/A;N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A RBDMSj MAY 1 7 2014 Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 2100 0 0 180 Subsequent to operation: 0 2100 0 0 178 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development❑✓ ‘ Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ .Gas Q WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 314-050 Contact Stan Porhola Email SpOrhOla Cl.hiICOrp.COm Printed Name i/ Stan Porhola Title Operations Engineer ' Signature —i,��7 y -��,/� Phone 907-777-8412 Date ( Z? �`t/ Form 10-404 Revised 10/2012 Submit Original Only Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-16RD 50-133-20554-01 207-125 1/24/14 1/24/14 Daily Operations: 01/24/2014- Friday RU E line unit. PT lubricator to 3,000 psi. Test good. Open swab valve. RIH and set down at 9,264'. Run correlation pass from 9,264'. Make .5' depth correction up hole. Get approval to shoot CCL to top shot 7.5'. PU into position at 9,023.5'. Well flowing 2.05 Mscf/d @ 173 psi._Perforate 9,019'to 9 046' (tie-in log not properly correlated to OH logs) 2-1/8" HC guns loaded 6 SPF, 60 degree phased Fire guns. Lost weight 100 lbs. Pull free at 1,400#. POOH. All guns fired. Guns wet. Arm second 27' of guns. Open swab valve. Well flowing 2.08 Mscf/d @ 174 psi. RIH to 9,250'. Pull correlation log from 9,250' up to 8,500'. Pull into position at 9,023.5'. CCL to top shot is 7.5'. Perforate 9,031' to 9,058' 2-1/8" HC guns loaded 6 SpF, 60 degree phasing Owens charge at. Run back in hole. Set down at 9,247'. 20' higher than previous tag. Sticky. Fill. Log from 9,247' back to 7,500'. POOH. OOH Close swab. RD. Well flowing 173 psi 2.119 Mscf/d. 3 _ r) , 30 „..____ BC-16RD ACTUAL Pad 3 SCHEMATIC Hilcorp Alaska,LLC 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Conductor Ii)ermit#: 207-125 20" K-55 133 ppf API#: 50-133-20554-01-00 Tom Bottom MD 0' 103' Property Des: A-028083TVD 0' 103' KB: 21'AGL (179'KB Elevation) 1 _- X= 317,399.46 I. �"* Surface Casing Y= 2,433,922.36 j L13-3/8" K-55 68 ppf Lat: 60° 39' 29.546" N IQQ Bottom Long: 151° 01' 4.102" W MD 0' 2,500' TVD 0' 2,z Spud: 05:00 hrs 9/27/2007 Cmt w/670 sks of Type 1 1,, TD Reached: 10/3/2007 Rig Released: 10:00 hrs 10/12/07 Intermediate Casing 9-5/8" L-80 40 ppf .y Top Bottom Ai 0' 5,188' TVD 0' 4,639 Tree cxn:6-1/2"Otis M! w� Cmt original well wl 209 Bbls 12.5 ppg of class G.Milled Sidetrack window 4,994'-5,004'DPM Top of Cement 4,200'MD 4116, CBL(10/26/07) �\ ' 794'above 9-5/8"window Production Tubing \\N 3-1/2" L-80 9.3 ppf EUE 8RD 1-` Top Bottom 9-5/8" Casing Window „ ; rvo o' ssei' milled from 4,994'to 5,004' '.. 8-1/2"hole Cmt w/1,720 sks(355 bbls)of Drill Pie Measurement ;'°p _ 15,7 ppg,class G cmt ixExcape System Details _ ' -4 Disappearing flappers(2-5) I -2 Reclosing flappers(6-7) Mod 1 -no flapper i Excape System Details -Ceramic flapper valves below 7 Excape modules placed. each module as follows: t, *r rtr;'i -Red control line for top 6 modules. r Flappers MD(RKBI: /,r v.', I I Green control line for bottom module. Module 7 - 8,571' , -Disappearing flapper valves below modules Module 6 - 8,626' ,� `. . . ,. LB-22 - 2 through 5. Module 5 - 9,030' f. '+:a - s. I - -Reclosing flapper valves below modules 6&7. Module 4 - 9,077' 7 3 = s = I = Lower Beluga Perfs: Module 3 - 9,166' �... MD(RKB) TVD Module 2 - 9,211' i • , ,k = II LB-22 - 8,411'-8,431' 7,619'-7,637' Module 1 - NA . m Module 7 - 8,551'-8,561' 7,750'-7,759' ` � -'- Module 6 - 8,606'-8,616' 7,802'-7,812' Directional Data: _ »_nI IT Module 5 - 9,011'-9,021' 8,186'-8,196' KOP-5,004'at 3.5 deg/100'buildop * _-.01P LB-30 - 9,019'-9,046' 8,194'-8,219' EOB-5,592',26.9 deg hole angle s (I - LB-30 - 9,031'-9,058' 8,205'-8,231 Drop-5,719'@ 2.0 deg/100' 4 P.r = , = Module 4 - 9,058'-9,068' 8,231'-8,240' Hold-6,858',16-20 deg hole angle to TD a LB-30 -- Module 3 - 9,147'-9,157' 8,316'-8,325' `1 = 1 s Module 2 - 9,192'-9,202' 8,359'-8,368' �� - Module 1 - 9,302'-9,312' 8,464'-8,474' = '� -_ LB-22 @ 10 spf r' 25 _ T LB-30 @ 6/12/6 spf 111 s Modules @ 6 spf Abandoned Sterling Perfs: :, I I ril - • - MD TVD _ Tagged fill @ 9,247'KB(1/24/14) B3 5,676'-8,686' 5,127'-5,137' a II= C:=31 w/2.125"E-line Perf Guns . _ , ... .. L TD PBTD 9,421'MD 9,402'MD 8,580'TVD 8,561'TVD Well Name&Number: Beaver Creek Unit#16RD Lease: A-028083 County or Parish Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 13.9°/100 ft @ 5,004' Angle/Perfs. 16.5°-.20° Maximum Deviation: 35°@ 2,121' Date Completed 10/11/07 Ground Level(above MSL) 158' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date 1/24/2014 Schematic Revision Date 1/27/2014 • ev4,) I//7- THE STA E 2x' a CL (7a a ^ I 333 WcsI Seventh Avenue GOVERNOR SEAN ['AI:NEL1. Anchorooe, Alaska 99501 3572 Nw F Mn: 907.279 1 n73 Stan Porhola t4r1) Operations Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 caO - I Anchorage, AK 99503 Re: Beaver Creek Field, Beluga Gas Pool, BCU #16RD Sundry Number: 314-050 Dear Mr. Porhola: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P oerster Chair DATED this 4-7 day of January, 2014. Encl. ` 'ARE EIVED • STATE OF ALASKA ti� ALASKA OIL AND GAS CONSERVATION COMMISSION %• JAN 2 1 2014 APPLICATION FOR SUNDRY APPROVALS �� 20 MC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool p Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate Q - Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other. ❑ 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number Exploratory ❑ Development 0 • 207-125 - 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic ❑ Service El6.API Number. _„,-----7.-4-„ Anchorage,Alaska 99503 50-133-20554.01 • /.If perforatin : %/� 8.Well Name and Number. What Regulation or Conservation Order govems well spacing in this pool? L / C / ; (,z-2_.I Beaver Creek Unit(BCU)#16RD . Will planned perforations require a spacing exception? Yes ❑ No ❑✓ 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028083 • Beaver Creek/Beluga Gas Pool • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 9,421' ' 8,580' . 9,402' 8,561' N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 82' 20" 103' 103' 3,060 psi 1,500 psi Surface 2,479' 13-3/8" 2,500' 2,285' 3,450 psi 1,950 psi Intermediate 5,167' 9-5/8" 5,188' 4,639' 5,750 psi 3,090 psi Production 9,381' 3-1/2" 9,402' 8,561' 10,160 psi 10,540 psi Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3#/L-80 9,402' Packers and SSSV Type: N/A;N/A Packers and SSSV MD(ft)and ND(ft): N/A;N/A 12.Attachments: Description Summary of Proposal ❑✓ 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch U Exploratory LI Stratigraphic ❑ Development U. Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 01/24/14 Oil ❑ Gas ❑✓ • WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR SPLUG 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Phone: 907-777-8412 Email sporhola@hilcorp.com Printed Name an Porhho/o. Title Aerations Engineer Signature / / 1.1 ' / _ Phone 907-777-8412 Date ( �( / COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sund Number: 3114_056 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: RBDM MAY U 9 2014 Spacing Exception Required? Yes ❑ No [' Subsequent Form Required: 10 — 40 APPROVED BY Approved by: 61 /9 -29-6-0--6---- COMMISSIONER THE COMMISSION Date: /-24--/ c� Submit Forint andq l Form 10-403(Revised 10/2012) Approv4 Ipp` 1 o onths from the date of approval. ttch� ents in Duplicate Imo. 0L1- 1 /23114 V � 2 1., 1,titi tit Well Prognosis Well: BCU-16RD Hilcorp Alaska,LL Date: 1/21/2014 Well Name: BCU-16RD API Number: 50-133-20554-01 Current Status: Producing Gas Well Leg: N/A Estimated Start Date: January 24th, 2014 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-125 First Call Engineer: Stan Porhola (907)777-8412 (0) (907)331-8228(M) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907)229-4824(M) AFE Number: Current Bottom Hole Pressure: — 1,475 psi @ 8,368' 11/D (Based on flowing survey July 2013 run to 9,221' MD) Maximum Expected BHP: — 1,475 psi @ 8,368' TVD (Based on flowing survey July 2013 run to 9,221' MD) Max.Allowable Surface Pressure: —638 psi (Based on actual reservoir conditions and gas gradient to surface (0.10psi/ft) Brief Well Summary Beaver Creek Unit#16RD was drilled as a sidetrack EXCAPE monobore completion in 2007 to target gas sands in the lower Beluga formation. All 7 EXCAPE modules were perforated and fracture stimulated. Perforations were added in the Lower Beluga LB-22 sand with minimal results.The well is currently on production making around 2.10 MMCF/D with no water. Notes Regarding Wellbore Condition • Well is currently flowing at 2.10 MMCF/D with a 175 psi flowing tubing pressure. • • Wellbore deviation at the perforations is less than 20 degrees. Maximum deviation is 35 degrees. OBJECTIVE OF WORKOVER Add new perfs in the LB-30 Lower Beluga sand. E-line Procedure: 1. MIRU E-line, PT lubricator to 3,000 psi Hi 250 Low. 2. RU 2.125" 6 spf Owen SDP HC wireline guns(will use 2 each 27'guns). 3. RIH and perforate Lower Beluga (LB-30) interval from 9,031'-9,058' (2 runs,total of 12 spf). a. Proposed perfs shown on the proposed schematic in red font. b. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. c. Correlate using Expro Cement Bond Log dated 10/26/07(Tie-in log depth is 9,031'-9,058'). d. Utilize Gamma/Pressure/Temperature tool on 1st run only. e. Record tubing pressures before and after each perforating run. 4. RD E-line. 5. Turn well over to production. Attachments: 1. As-built Schematic 2. Proposed Schematic • . __._._,_. BC-I 6RD ACTUAL Pada SCHEMATIC Hilcorp Alaska,LLC 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Conductor 133 ermit# 207-125 20" K-55 Boom API#: 50-133-20554-01-00 MD r0 103m Property Des: A-028083 TVD 0' 103' KB: 21'AGL (179'KB Elevation) 1' 317,399.46 j i E ' Surface Casing 2,433,922.36 13-3/8" K-55 68ppf at: 60° 39' 29.546" N ' rog Bottom 0onq: 151° 01' 4.102" W • TVD 0 z' z,z285 1, pud: 05:00 hrs 9/27/2007 o Cmt w/670 sks of Type 1, D Reached: 10/3/2007 iq Released: 10:00 hrs 10/12/07 Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' TVD 0' 4,639 Tree cxn:6-1/2"Otis Cmt original well w/209 Bbls 12.5 ppg of class G.Milled Sidetrack 4 window 4,994'-5,004'DPM Top of Cement 4,200'MD _ Fy' CBL(10/26/07) \ ' 794'above 9-5/8"window Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD -- Top Bottom 9-5/8" Casing Window ', TVD o' a 561' milled from 4,994'to 5,004' (Drill Pipe Measurement) 8-1/2"hole Cmt w/1,720 sks(355 bbls)of ppg,class G cmt Excape System Details .. =:ro,____\\\N -4 Disappearing flappers(2-5) -2 Reclosing flappers(6-7) -Mod 1 -no flapper I -Ceramic flapper valves below , ExcapeSystemDetails each module as follows: • :1%r `"' I I - 7 Excape modules placed. Flappers MD(RKB): - , . - control line for top 6 modules. Module 7 - 8,571' ' -Green control line for bottom module. Module 6 - 8,626' -' _ . -Disappearing flapper valves below modules Module 5 - 9,030' - -- 2 through 5. Module 4 - 9,077' 1` '' _ -Reclosing flapper valves below modules 6&7. Module 3 - 9,166' •,.. Module 2 - 9,211' ' ' • , ' F se= Lower Beluga Perfs: Module 1 - NAr. r' I 1 = MD(RKB) TVD LB-22 - 8,411'-8,431' 7,619'-7,637' --t--- Module 7 - 8,551'-8,561' 7,750'-7,759' Directional Data: = (li = Module 6 - 8,606'-8,616' 7,802'-7,812' KOP-5,004'at 3.5 deg/100'build , ..-12g Module 5 - 9,011'-9,021' 8,186'-8,196' EOB-5,592',26.9 deg hole angle , = I I Module 4 - 9,058'-9,068' 8,231'-8,240' Drop-5,719'@ 2.0 deg/100' - Hold-6,858',16-20 deg hole angle to TD I Module 3 - 9,14T-9,15T 8,316' 8,325' Module 2 - 9,192'-9,202' 8,359'-8,368' 1 = I� === Module 1 - 9,302'-9,312' 8,464'-8,474' d = I I = LB-22 @ 10 spf ," 1 - -7,--- Modules @ 6 spf It I _ Abandoned Sterling Perfs: a e MD TVD 101Tagged fill @ 9,215'KB(7/20/13) B3 5,676'-8,686' 5,127'-5,137' a w/2.25"Gauge Ring . _j . TD PBTD 9,421'MD 9,402'MD 8,580'TVD 8,561'TVD Well Name&Number: Beaver Creek Unit#16RD Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 13.9°/100 ft ®5,004' Angle/Perfs: 16.5°-20° Maximum Deviation: 35°c 2,121' Date Completed: 10/11/07 Ground Level(above MSL) 158' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date 1/19/2014 Schematic Revision Date 1/21/2014 . , a BC-1 6RD PROPOSED Pada SCHEMATIC IIih �,I).al.�a.t-I•I•t: 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Conductor Permit#: 207-125 20" K-55 133 ppf API#: 50-133-20554-01-00 MD Totto 0' B103m Property Des: A-028083 TVD 0' 103' j isi KB: 21'AGL (179'KB Elevation) X= 317,399.46 i . ` Surface Casing Y= 2,433,922.36 13-3/8" K-55 68 ppf Let: 60° 39' 29.546" N Tom Bottom Long: 151° 01' 4.102" W MD TVD o' 0' z,,285 2,285' Spud: 05:00 hrs 9/27/2007 Cmt w/670 sks of Type 1, TD Reached: 10/3/2007 Riq Released: 10:00 hrs 10/12/07 Intermediate Casing • 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' Tree cxn:6-1/2"Otis , II TVD 0' 4,639 !� Cmt original well w/209 Bbls 12.5 ppg of class G.Milled Sidetrack window 4,994'-5,004'DPM Top of Cement 4,200'MD CBL(10/26/07) ' 794'above 9-5/8"windowProduction Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom 9-5/8" Casing Window , , TVD 0' s 561' milled from 4,994'to 5,004' (Drill Pipe Measurement) 15.7 5 7 ppg,hole tw/me2o sks(355 bbls)of Excape System Details \ " Add perforations -4 Disappearing flappers(2-5) lit9 031'-9,058' -2 Reclosing flappers(6-7) + -Mod 1-no flapper -Ceramic flapper valves below • Excape S,stem Details each module as follows: 11 - 7 Ex .pe modules placed. Flappers MD(RKB): • rontrol line for top 6 modules. Module 7 - 8,571' ., , - -.n control line for bottom module. Module 6 - 8,626' '. -_ . , -Di--ppearing flapper valves below modules Module 5 - 9,030' . •• ( - through 5. Module 4 - 9,077' 'I --=-- - "eclosing flapper valves below modules 6&7. Module 3 - 9,166' �'.. - *-- Module 2 - 9,211' ower Beluga Perfs: Module 1 - NA - - II = MD(RKB) TVD I y, - LB-22 - 8,411'-8,431' 7,619'-7,637' Directional Data: !I~ Module 7 - 8,551'-8,561' 7,750'-7,759' KOP-5,004'at 3.5 deg/100'build A_I ry •' Module 5 - 9,0101'-9,021' 8,186'-8,196' EOB-5,592',26.9 deg hole angle s I i - Proposed - 9,031'-9,058' 8,205'-8,231' v'Drop-5,719'@ 2.0 deg/100' I _ _- Module 4 - 9,058'-9,068' 8,231'-8,240' Hold-6,858',16-20 deg hole angle to TD4111L'Illii1V Module 3 - 9,147'-9,157' 8,316'-8,325' �1 Module 2 - 9,192'-9,202' 8,359'-8,368' Module 1 - 9,302'-9,312' 8,464'-8,474' =it ii = ----- ,3 - LB-22 @ 10 spf 3'1, LB-30 @ 12 spf . h k ._,..1 Abandoned Sterling Perfs: 0 .. - MD ND = _ l['11 • Tagged fill @ 9,215'KB(7/20/13) B3 5,676'-8,686' 5,12T-5,137' a rs I I r w/2.25"Gauge Ring :4 ', TD PBTD 9,421'MD 9,402'MD 8,580'TVD 8,561'TVD Well Name&Number: Beaver Creek Unit#16RD Lease:_ A-028083 County or Parish: Kenai Peninsula Borough State/Prov Alaska Country: USA Angle @KOP and Depth: 13.9°/100 ft @ 5,004' Angle/Perfs: 16.5°-.20° Maximum Deviation: 35°@ 2,121' Date Completed: 10/11/07 Ground Level(above MSL) 158' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date Proposed Schematic Revision Date 1/21/2014 STATE OF ALASKA RECEIVED AL A OIL AND GAS CONSERVATION COMML..,ION REPORT OF SUNDRY WELL OPERATIONS JAN 2 1 2220141.Operations Abandon Li Repair Well U Plug Perforations U Perforate U Other AOGC Performed: Alter Casing ❑ Pull Tubing El Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development 0 Exploratory ❑ • 207-125 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99504 a 50-133-20554-01 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA028083 • • Beaver Creek Unit(BCU)16RD 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Beaver Creek/Sterling Pool 11.Present Well Condition Summary: Total Depth measured , 9,421 feet Plugs measured N/A feet true vertical 8,580 feet Junk measured N/A feet Effective Depth measured 9,402 feet Packer measured N/A feet true vertical 8,561 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural 103' 20" 103' 103' 3,060 psi 1,500 psi Conductor Surface 2,500' 13-3/8" 2,500' 2,285' 3,450 psi 1,950 psi Intermediate Production 5,188' 9-5/8" 5,188' 4,639' 5,750 psi 3,090 psi Liner Perforation depth Measured depth See Attached Schematic SCANNED MAY 2 9 2014 True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 9,402'MD 8,561'TVD Packers and SSSV(type,measured and true vertical depth) N/A;N/A N/A;N/A N/A;N/A N/A;N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A RBDMSAY 17 2014 Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 1800 0 0 220 - Subsequent to operation: 0 2100 0 0 180 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development Ej r. Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ s,Gas ❑✓ WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 314-020 Contact Stan Porhola Email sporholaehilcorp.com Printed Name Stan Porhola Title Operations Engineer Signature ,...44,..--/0-7.16-e....--- Phone 907-777-8412 Date /-2...///y- .7e, Form 10-404 Revised 10/2012 CA 7 5p Submit Original Only Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-16RD 50-133-20554-01 207-125 1/17/14 1/19/14 Daily Operations: 01/17/2014- Friday RU E line unit. Well flowing 1.8 MMscf/day @ 220 psi. MU GPT tool, shock sub, and 2-1/2" x 20 perf guns loaded 6 SPF, 60 degree phased Connex charges. PT lub to 2,500 psi. Open swab valve. Well flowing. RIH to 8,643'. No fluid detected on trip in hole. Pull correlation pass up to 8,230'. Make depth corrections. Correlate to Expro Dual Radial Bond log dated 10/26/2007. Email correlation log to town. While waiting for appoval. Drop to proposed perf interval and monitor BHP and Temp. BHP @ 8,420 is 353 psi and 116 degrees F. Discuss log with town. CCL to top shot is 12'. Receive approval. Pull up into position at 8,402' with CCL. Perforate 20'from 8,414' to 8,434' with 2-1/2"guns loaded 6SPF 60 degree phased Connex charges. Loose a little weight, but guns become stuck in perf interval. Work wire to unstick guns gradually increasing tension. At 13:50, pulling 2,900#guns move up hole approx 20' and stick again. Continue working guns. No movement. Increasing tension on line. Continue to discuss situation with town. Pulling to 3,400#. No movement. Decision made to part weak point in line. Pulling at 3,500#and guns come free. Guns pull hard 2,000-2,700#for several thousand feet. Slow trip out of hole. OOH. Close swab valve. Well still flowing 1.8 MMscf @ 260 psi. Guns severely swollen. Some scallops are split. Swollen wrinkles very shiny from dragging on casing coming out of hole. RD E line unit and leave loc. 01/19/2014-Sunday RU E line unit. MU lubricator. MU tool string, RS, CCL, firing head, 2-1/2" x 20' guns loaded 4 SPF Geo Dynamic charges. PT lubricator to 2,500 psi. Test good. RIH to 8,650', thru Excape modules#6 &7. Log correlation pass up to 8,290'. Correlate to collars on Pollard shooting log dated 1/17/2014. Email correlation log to town. Pull up into position at 8,411.2'. Distance from CCL to top shot is 2.8'. Top shot @ 8,414'. Receive town approval. Fire guns perforating 8,414'to 8,434' with 2-J2" guns loaded 4 SPF, Owen charges for dry. Slight weight loss on firing guns. PUH Work tools. Pull to 2,200#to pull guns free. POOH. OOH. Close swab valve. RD E line unit. All shots fired. • , ____ . r BC-16RD ACTUAL Pad 3 SCHEMATIC nikon")Alaska,Lf.0 1,269' FNL, 1,587' FWL Sec.34, T7N, R1OW, S.M. .,_ . _,' Conductor Permit#: 207-125 20" K-55 133 ppf API#: 50-133-20554-01-00 MD T0' Bottom103' Property Des: A-028083 TVD 0' 103' KB: 21'AGL (179' KB Elevation) X= 317,399.46 Surface Casing Y= 2,433,922.36 13-3/8" K-55 68 ppf Lat: 60° 39' 29.546" N Top Bottom Long: 151° 01' 4.102" W MD o' 2, TVD 0' 2,,286 285' Spud: 05:00 hrs 9/27/2007 Cmtw/670 sks of Type 1, TD Reached: 10/3/2007 in Released: 10:00 hrs 10/12/07 ' Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom Alii MD 0' 5,188' fi ' , Tree cxn:6-1/2"Otis II y.• CmtTVD original0well w/2049 B639bls 12.5 4 }', ppg of class G.Milled Sidetrack •4 '-a window 4,994'-5,004'DPM Top of Cement 4,200'MD _ ! CBL(10/26/07) 794'above 9-5/8"window , \ ; Production Tubing N'\ 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom 9-5/8" Casing Window M D 0' a 561' milled from 4,994'to 5,004' (Drill Pipe Measurement) 8-1/2"hole Cmt w/1,720 sks(355 bbls)of pppg,class G cmt Excape System Details -4 Disappearing flappers(2-5) ' -2 Reclosing flappers(6-7) `°" `-"° - ! I' -Mod 1 -no flapper -Ceramic flapper valves below Excape System Details each module as follows: - 7 Excape modules placed. Flappers MD(RKB): • - control line for top 6 modules. Module 7 - 8,571' . -C,reen control line for bottom module. Module 6 - 8,626' ' .- _ - -Disappearing flapper valves below modules Module 5 - 9,030' e -� - 2 through 5. Module 4 - 9,077' = I' _ -Reclosing flapper valves below modules 6&7. Module 3 - 9,166' ,. - Module 2 - 9,211' = - Lower Beluga Perfs: Module 1 - NA 't ' = I I s MD(RKB) !(. TVD - LB-22 - 8,411'-8,434' 7,619'-7,637' _ c € -o` Module 7 - 8,551'-8,561' 7,750'-7,759' Directional Data: = '._ >s Module 6 - 8,606'-8,616' 7,802'-7,812' KOP-5,004'at 3.5 deg/100'build s -1.2Module 5 - 9,011'-9,021' 8,186'-8,196' EOB-5,592',26.9 deg hole angle - 1 s Drop-5,719'@ 2.0 deg/100' = i = Module 4 - 9,058' 9,068' 8,231'-8,240' Hold-6,858',16-20 deg hole angle to TD Module 3 - 9,14T-9,157' 8,316' 8,325' `i = Module 2 - 9,192'-9,202' 8,359'-8,368' _ - I I s Module 1 - 9,302' 9,312' 8,464'-8,474' 7- r 4 = I - LB-22 @ 10 spf I - Modules @ 6 spf rii' Abandoned Sterling Perfs: k +' - +• - MD TVD a = • I Tagged fill @ 9,215'KB(7/20/13) B3 5,676'-8,686' 5,127'-5,137' _' 1-1 w/2.25"Gauge Ring J . . .„ori*L TD PBTD 9,421' MD 9,402' MD 8,580'TVD 8,561'TVD Well Name&Number: Beaver Creek Unit#16RD Lease. A-028083 County or Parish: Kenai Peninsula Borough State/Prov Alaska Country: USA Angle @KOP and Depth:_ 13.9°/100 ft @ 5,004' Angle/Perfs: 16.5° 20° Maximum Deviation: 35° ac 2,121' Date Completed: 10/11/07 Ground Level(above MSL) 158' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date 1/19/2014 Schematic Revision Date 1/21/2014 • OF Thy �w \�\I%i tr THE STATE A i as 'TT /�j _ rrt `J �,�\51 / `-.�1._( „,c c' ` r ,.�. ,'' _ �'1,111..,...a e ,1 T..:,, p � / i9S ttitt 333 West Seventh Avenue- GOVERNOR SEAN PARNEI I Anchorage, Alaska 99301-3572 Main: 907.279.1433 Fax: 907.276.75/-2 SCAtiStan Porhola NES MAY 6 n14 Operations Engineer Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 ao Anchorage, AK 99503 Re: Beaver Creek Field, Beaver Creek Gas Pool, BCU #16RD Sundry Number: 314-020 Dear Mr. Porhola: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, .7 Cathy P. Foerster Chair DATED this / day of January, 2014. Encl. t , ' -•:- il STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION ';',4 1 ,; APPLICATION FOR SUNDRY APPROVALS pis i I?� l 20 AAC 25.280 tA' O 41 C ice- 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ 0/'Perforate Q ' Pull Tubing ❑ Time Extension ❑ Operations Shutdown El Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other. ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number. Hilcorp Alaska,LLC Exploratory ❑ Development Q • 207-125 • 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic ❑ Service ill6.API Number. Anchorage,Alaska 99503 50-133-20554-01 • 7.If perforating: . 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? L_' z 37 /0/. / 3 1'/ T Beaver Creek Unit(BCU)#16RD • Will planned perforations require a spacing exception? Yes ❑ No ❑✓ 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028083 • Beaver Creek/Beluga Gas Pool • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 9,421' • 8,580' • 9,402' 8,561' N/A N/A Casing Length Size MD ND Burst Collapse Structural Conductor 82' 20" 103' 103' 3,060 psi 1,500 psi Surface 2,479' 13-3/8" 2,500' • 2,285' 3,450 psi 1,950 psi Intermediate 5,167' 9-5/8" 5,188' . 4,639' 5,750 psi 3,090 psi Production 9,381' 3-1/2" 9,402' . 8,561' 10,160 psi 10,540 psi Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3#/L-80 9,402' Packers and SSSV Type: N/A;N/A Packers and SSSV MD(ft)and ND(ft): N/A;N/A 12.Attachments: Description Summary of Proposal ❑✓ 13.Well Class after proposed work: Detailed Operations Program U BOP Sketch U Exploratory U Stratigraphic U Development U Service U 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 01/16/14 Oil ❑ Gas ❑✓ • WDSPL ❑ Suspended El 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG El 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Phone: 907-777-8412 Email sporholaahiIcorp.com Printed Nameoo 'Stan PoPorhla Title Operations Engineer Signature 2. 0'"1 Phone 907-777-8412 Date l7 oi/i y. COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: k'- .-a2.x.) Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: RBDMS MAY ki 9 2014 Spacing Exception Required? Yes ❑ No ['Vi Subsequent Form Required: / 6 -4/Ott y APPROVED BY Approved by: /,...__— COMMISSIONER THE COMMISSION Date: `_ /7 —/ y.. 1 n n Submit Form and Form 10-403(Re4ised 10/20 Appro�lec�a�llcftei ihi f 1 months from the date of approval. Attachments in D iicate J`' 4,.., Well Prognosis Well: BCU-16RD Hilcorp Alaska,LLC Date:1/10/2014 Well Name: BCU-16RD API Number: 50-133-20554-01 Current Status: Producing Gas Well Leg: N/A Estimated Start Date: January 16th, 2014 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 207-125 First Call Engineer: Stan Porhola (907)777-8412 (0) (907)331-8228(M) Second Call Engineer: Chad Helgeson (907)777-8405(0) (907)229-4824(M) AFE Number: Current Bottom Hole Pressure: — 1,475 psi @ 8,368'ND (Based on flowing survey July 2013 run to 9,221' MD) Maximum Expected BHP: — 1,475 psi @ 8,368'ND (Based on flowing survey July 2013 run to 9,221' MD) Max. Allowable Surface Pressure: —638 psi (Based on actual reservoir conditions and gas gradient to surface(0.10psi/ft) Brief Well Summary Beaver Creek Unit#16RD was drilled as a sidetrack EXCAPE monobore completion in 2007 to target gas sands • in the lower Beluga formation. All 7 EXCAPE modules were perforated and fracture stimulated.The well is currently on production making around 2.00 MMCF/D with no water. Notes Regarding Wellbore Condition • Well is currently flowing at 2.00 MMCF/D with a 175 psi flowing tubing pressure. • Wellbore deviation at the perforations is less than 20 degrees. Maximum deviation is 35 degrees. OBJECTIVE OF WORKOVER Add new perfs in the LB-22 Lower Beluga sand. E-line Procedure: 1. MIRU E-line, PT lubricator to 3,000 psi Hi 250 Low. 2. RU 2.5" 6 spf Connex HC wireline guns(will use 2 each 20'guns). 3. RIH and perforate Lower Beluga (LB-22) interval from 8,411'-8,431' (2 runs,total of 12 spf). a. Proposed perfs shown on the proposed schematic in red font. b. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. c. Correlate using Expro Cement Bond Log dated 10/26/07(Tie-in log depth is 8,414'-8,434'). d. Utilize Gamma/Pressure/Temperature tool on 1st run only. e. Record tubing pressures before and after each perforating run. 4. RD E-line. 5. Turn well over to production. Attachments: 1. As-built Schematic 2. Proposed Schematic . .. BC-16RD ACTUAL Pada SCHEMATIC Ilih �,1� aha,l.�•t.l.t. 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Conductor _ Permit#: 207-125 20" K-55 133 ppf API#: 50-133-20554-01-00 Tom Bottom MD 0' 103' Property Des: A-028083 TVD 0' 103' KB: 21'AGL (179'KB Elevation) X= 317,399.46J i Surface Casing Y= 2,433,922.36 L [11113-3/8" K-55 68 ppf 500' Lat: 60° 39' 29.546" N Tom Bottom Long: 151° 01' 4.102" W MD o' z, TVD 0' 2,,285285 ' Spud: 05:00 hrs 9/27/2007 1 cmt w/670 sks of Type 1, TD Reached: 10/3/2007 Rig Released: 10:00 hrs 10/12/07 Intermediate Casing 9-5/8" L-80 40 ppf Top Bottom MD 0' 5,188' Tree cxn:6-1/2"Otis TVD 0' 4,639 Cmt original well w/209 Bbls 12.5 ppg of class G.Milled Sidetrack - r window 4,994'-5,004'DPM Top of Cement 4,200'MD - I_ 1 CBL(10/26/07) 794'above 9-5/8"window \ Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom 9-5/8" Casing Window MD 0' 9,402' TVD 0' 8,561' milled from 4,994'to 5,004' 8-1/2"hole Cmt w/1,720 sks(355 bbls)of (Drill Pipe Measurement) 15.7 ppg,class G cmt Excape System Details -4 Disappearing flappers(2-5) 2 Reclosing flappers(6-7) -4. - ` Excape System Details -Mod 1-no flapper 7 Excape modules placed. -Ceramic flapper valves below - Red control line for top 6 modules. each module as follows: j i -Green control line for bottom module. Flappers MD(RKB): , , I ' -Disappearing flapper valves below modules Module 7 - 8,571' • i 2 through 5. Module 6 - 8,626' , -Reclosing flapper valves below modules 6&7. Module 5 - 9,030' • - - Module 4 - 9,077' = Lower Beluga Perfs: I Module 3 - 9,166' - MD(RKB) ND y Module 2 - 9,211' = Module 7 - 8,551'-8,561' • 7,750'-7,759' Module 1 - NA = I = Module 6 - 8,606'-8,616' • 7,802'-7,812' T- - Module 5 - 9,011'-9,021' • 8,186'-8,196' g - - Module 4 - 9,058'-9,068' • 8,231'-8,240' Directional Data: . - Module 3 - 9,147'-9,157' • 8,316'-8,325' KOP-5,004'at 3.5 deg/100'build ,- r` ,-:� - Module 2 - 9,192'-9,202' • 8,359'-8,368' EOB-5,592',26.9 deg hole angle { s 1 =_- Module 1 - 9,302'-9,312' - 8,464'-8,474' Drop-5,719'@ 2.0 deg/100' I s Hold-6,858',16-20 deg hole angle to TD ��t �,' ',/ = a i r Abandoned Sterling Perfs: e Tagged fill @ 9,215'KB(7120/13) MD ND s B3 5,676'-8,686' 5,127'-5,137' w/2.25"Gauge Ring j .' f `. ',' :.'t TD PBTD 9,421'MD 9,402'MD 8,580'TVD 8,561'TVD I Well Name&Number: Beaver Creek Unit#16RD Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska _ Country: USA Angle @KOP and Depth: 13.9°/100 ft @ 5,004' Angle/Perfs: 16.5°-*20° Maximum Deviation 35°@ 2,121' Date Completed: 10/11/07 _ Ground Level(above MSL) 158' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date 7/20/2013 Schematic Revision Date 8/8/2013 s ' ' II BC-1 6RD PROPOSED Pada SCHEMATIC Hilenru Alaska,LLC 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. Conductor Permit#: 207-125 20" K-55 133 ppf API#: 50-133-20554-01-00 Tom Bottom MD 0' 103' Property Des: A-028083 TVD 0' 103' KB: 21'AGL (179'KB Elevation) - X= 317,399.46 Surface Casing Y= 2,433,922.36 IL [ 13-318" K-55 68 ppf 2,285 Lat: 60° 39' 29.546" N Tom Bottom Lona: 151° 01' 4.102" W TVD MD o0'' 2,285 ' Spud: 05:00 hrs 9/27/2007 Cmt w/670 sks of Type 1, TD Reached: 10/3/2007 Riq Released: 10:00 hrs 10/12/07 Intermediate Casing 9-518" L-80 40 ppf Top Bottom I MD 0' 5,188' Tree cxn:6-1/2"Otis TVD 0' 4,639 Cmt original well w/209 Bbls 12.5 ppg of class G.Milled Sidetrack I7,, window 4,994'-5,004'DPM Top of Cement 4,200'MD CBL(10/26/07) 794'above 9-5/8"window a�\ Production Tubing 4,N 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 0' 9,402' 9-5/8" Casing Window TVD Cl' 8,561' milled from 4,994'to 5,004' 8-vr'hole Cmt w11,720 sks(355 bbls)of (Drill Pipe Measurement) \ 15.7 ppg,class G cmt Excape System Details _ -4 Disappearing flappers(2-5) -. Add perforations -)f-2 Reclosing flappers(6-7) 8,411'-8,431' -Mod 1 -no flapper 1, i; -Ceramic flapper valves below '^-= . each module as follows: '' t . Excape System Details Flappers MD(RKB): Module 7 - 8,571' 0 - 7 Excape modules placed. Module 6 - 8,626' ' ..:::=. ,-- -Red control line for top 6 modules. Module 5 - 9,030' . /V _ - -Green control line for bottom module. Module 4 - 9,077' = I! _ -Disappearing flapper valves below modules Module 3 - 9,166' v - 2 through 5. Module 2 - 9,211' + / -Reclosing flapper valves below modules 6&7. Module 1 - NA Di = " - Lower Beluga Perfs: „ - P1 = MD(RKB) TVD Directional Data: - I = proposed - 8.411'-8.431' 7,61q e KOP-5,004'at 3.5 deg/100'build -, { , 77EOB-5,592',26.9 deg hole angle = l 1 ----= Module 7 - 8,551'-8,561' 7,750'-7,759' Drop-5,719'@ 2.0 deg/100' I - Module 6 - 8,606'-8,616' 7,802'-7,812' Hold-6,858',16-20 deg hole angle to TD -: Module 5 - 9,011'-9,021' 8,186' 8,196' = I T Module 4 - 9,058'-9,068' 8,231'-8,240' - - Module 3 - 9,147' 9,157' 8,316'-8,325' l' = Module 2 - 9,192'-9,202' 8,359'-8,368' Module 1 - 9,302'-9,312' 8,464' 8,474' ., ,, . S ru4r� . ti . ____, : =_- Abandoned Sterling Perfs: - r• - MD TVD s Tagged fill @ 9,215'KB(7/20/13) B3 5,676'-8,686' 5,127'-5,137' w/2.25"Gauge Ring . TD PBTD I 9,421'MD 9,402'MD 8,580'TVD 8,561'TVD Well Name&Number: Beaver Creek Unit#16RD Lease:, A-028083 County or Parish. Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 13.9°/100 ft @ 5,004' Angle/Perfs: 16.5°-+20° Maximum Deviation 35°@ 2,121' Date Completed: 10/11/07 Ground Level(above MSL) 158' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date Proposed Schematic Revision Date 1/10/2014 ~.' ' "~"~~ `~~ ~~,e, y ~ . ~'.n 3 ~ _ ~~ '~ .~. ~ ~ °- ~ _ ~. ~~~~v~. :'~~ MICROFILMED .6/30/2010. DO NOT PLACE ANY N EW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc DATA SUBMITTAL COMPLIANCE REPORT 12/1 /2008 Permit to Drill 2071250 Well Name/No. BEAVER CK UNIT 16RD Operator MARATHON OIL CO MD 9421 TVD 8580 Completion Date 10/31/2007 Completion Status 1-GAS Current Status 1-GAS API No. 50-133-20554-01-00 UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey DATA INFORMATION Types Electric or Other Logs Run: GR, Resistivity, Neutron, Density, Sonic, and Pressures Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Type Med/Frmt Number Name Scale Media No ~ ~ C Las 15646 See Notes C 15646 Report: Final Well R (data taken from Logs Portion of Master Well Data Maint Interval OH / Start Stop CH Received Comments 11/9/2007 Multi LAS files, TVD Main MD Main and Other, Plots, DPK, Mudlogs in PDF, LAS 0 0 11/9/2007 Elec-End of Well Report in Word and PDF veriosn. Well Cores/Samples Information: Name ADDITIONAL INFORM ON Well Cored? ~ Y N Chips Received? Y Tl~- - Analysis ~~ Y / N Received? Comments: Sample Interval Set Start Stop Sent Received Number Comments Daily History Received? ~/ N Formation Tops ~/ N - - _- . --- - - - -- - - '' ''AA''---~~~ __-_-- Compliance Reviewed By: -- - _ _ _ Date: _ ~~-~-- n'WV~ J Marathon Oil Company Alaska Asset Team M Marathon P.o. Box 1949 Kenai, AK 99611 MARATHON OBI Company Telephone 907/283-1371 Fax 907/283-1350 December 3, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 ~~C Q ~ ?007 ~laslra Oil & Gas Cony. s;ommissi~n Reference: 10-407 Well Completion Report Anchorage Field: Beaver Creek Field Well: Beaver Creek 16 ReDrill Dear Mr. Maunder: Enclosed please find the 10-407 Well Completion Report for BC-16RD well. The API# assigned for this well (on the Permit to Drill Sundry) was 50-133-20573-00-00. This sundry is submitted under the corrected API# 50-133-20554-01-00 which was verbally supplied by the AOGCC on 12/3/2007. BC-16RD was completed into the Lower Beluga formation with seven Excape modules. All modules were perforated and fracture stimulated with #1 module screening off prior to formation breakdown. Also attached, for your records, are the current wellbore diagram, Operations Summary, and directional survey. If you have any questions or require additional information, please call me at (907) 283- 1371. Sincerely, ~. Kevin J. Skiba Production Technician Enclosures: 10-407 Well Completion Report cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS Directional Survey CLR STATE OF ALASKA ALAS OIL AND GAS CONSERVATION '~~ ~~~ o ~ Z~~~ COM SIGN WELL COMPLETION OR RECOMPLETION R~~'h~~-~"''"~"' 1a. Well Status: Oil ^ Gas Q Plugged ^ Abandoned ^ Suspended ^ zonnczs.~os 2onnc2s.~~o GINJ^ WINJ^ WDSPL^ WAG^ Other^ No. of Completions: 1 b. Well Class: Development ^~ Exploratory^ Service ^ StratigraphicTest^ 2. Operator Name: Marathon Oil Company 5. Date Comp., Susp., or Aband.: 10/31/2007 12. Permit to Drill Nug~ FF,, 3Q~ 3,(0 207-125 3. Address: PO Box 1949 Kenai Alaska 99611-1949 6. Date Spudded: 9/27/2007 13. API Number. 50-133-20554-01-00 4a. Location of Well (Governmental Section): Surface: 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. 7. Date TD Reached: 10/3/2007 14. Well Name and Number: Beaver Creek 16RD Top of Productive Horizon: 1,330' FSL, 2,622' FEL, Sec. 34, T7N, R10W, S.M. 8. KB (ft above MSL): 21' Ground (ft MSL): 158' 15. Field/Pool(s): , Total Depth: 1,381' FSL, 2,136' FEL, Sec. 34, T7N, R10W, S.M. 9. Plug Back Depth(MD+TVD): 9,402' MD 8,561' ND Beaver Creek / Beluga POOI 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 317,399.50 y- 2,433,922.51 Zone- 4 10. Total Depth (MD +TVD): 9,421' 8,580' 16. Property Designation: A - 028083 ~ TPI: x- 318,452.03 y- 2431214.25 Zone- 4 Total Depth: x- 318,921.25 y- 2431280.85 Zone- 4 11. SSSV Depth (MD +TVD): NA 17. Land Use Permit: 18. Directional Survey: Yes No ~ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: NA (ft MSL) 20. Thickness of Permafrost (ND): NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): GR, Resistivity, Neutron, Density, Sonic, and Pressures. ~//i/./~O`/~ ~~~/y~~j~~~TY~, 22. CASING, L INER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 20" 133 K-55 0' 83' 0' 83' Driven 0 13-3/8" 68 K-55 0' 2,500' 0' 2,285' 10-3/4" 670 sks Type 1 0 9-5/8" 40 L-80 0' 5,188' 0' 4,639' 7-5/8" 209 bbl Class G 0 23. Open to production or injection? Yes Q No^ If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) 9,302'-9,312' MD (8,464'-8,474' ND) EXCAPE Module 1 - 3-1/2" 9,402' 9,192'-9,202' MD (8,359'-8,368' ND) EXCAPE Module 2 , 9,147'-9,157' MD (8,316'-8,325' ND) EXCAPE Module 3 ~ 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 9,058'-9,068' MD (8,231'-8,240' ND) EXCAPE Module 4 - DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 9,011'-9,021' MD (8,186'-8,196' ND) EXCAPE Module 5- 9,302' MD Failed to breakdown reservoir. 8,606'-8,616' MD (7,802'-7,812' ND) EXCAPE Module 8- 9,192' MD Frac'd and 8800# 20/40 Sand Placed. 8,551'-8,561' MD (7,750'-7,759' ND) EXCAPE Module 7 - 9,147' MD Frac'd and 5400# 20/40 Sand Placed. 9,058' MD Frac'd and 5097# 20/40 Sand Placed. 9,011' MD Frac'd and 20,731# 20/40 Sand Placed. 8,606' MD Frac'd and 5649# 20/40 Sand Placed. 8,551' MD Frac'd and 12423# 20/40 Sand Placed. 26. PRODUCTION TEST Date First Production: 11/3/2007 Method of Operation (Flowing, gas lift, etc.): Flowing Date of Test: 11/24/2007 Hours Tested: 24 Production for Test Period Oil-Bbl: 0 Gas-MCF: 6,038 Water-Bbl: 4 Choke Size: 64/64 Gas-Oil Ratio: 100% Gas Flow Tubing Press. 1,530 Casing Press: 0 Calculated 24-Hour Rate ~ Oil-Bbl: 0 Gas-MCF: 6,038 Water-Bbl: 4 Oil Gravity -API (corr): NA 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No^ Sidewall Cores Acquired? Yes ^ No^ If Yes to either question, list formations and intervals cored (MD+TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water... (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.0TI. , _:.;, di1 N/A S R`rp!^p,~iF(/~ y) ~ e(, 7 I~aV'~~ !4 ®6 M-. ULSi d ti' LOO/ ~ k j Form 10-407 Revised 2/2007 CONTINUED ON REVERSE ~~ 28. GEOLOGIC MARKERS (List all formations and m encountered): 29. FORMATION TESTS NAME MD TVD Well tested? ~ Yes N ff yes, list intervals and formations tested, briefly ~ summarizing test results. Attach separate sheets to this form, if needed, and submit detailed test information per 20 AAC 25.071. Upper Beluga 6,420' MD 5,756' TVD The following Lower Beluga Intervals were frac'd/stimulated as described on Side 1 of this Middle Beluga 6,855' MD 6,159' TVD document. All these zones were tested together at an IP of 5.5 MMcf/d at 1700 psi. Lower Beluga 7,719' MD 6,973' TVD TD 9,a21' MD a,57s' TvD 9,302'-9,312' MD (8,464'-8,474' TVD) 9,192'-9,202' MD (8,359'-8,368' TVD) 9,147'-9,157' MD (8,316'-8,325' TVD) 9,058'-9,068' MD (8,231'-8,240' TVD) 9,011'-9,021' MD (8,186'-8,196' TVD) 8,606'-8,601' MD (7,802'-7,812' TVD) 8,551'-8,561' MD (7,750'-7,759' TVD) 30. List of Attachments: Operations Summary, Current Well Schematic 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283-1371 Printed Name: Craig L. Rang Title: Senior Completions Engineer r^ Signature: Phone: 907 283-1372 Date: 12/3/2007 v ~ INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for 1 njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: ff this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). ttem 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 Company: Marathon Oil Comoanv Job Number. 1565111 Calculation Meltad Minimum Curvature Well: Beaver Creek 16RD Magnetic Decl.: 19.19 Proposed Azimuth 149.03 ~~ Location: Kenain Peninsula Grid Corr.: Depth Reference RKB '"" Rig: Glacier 1 Total Gritl Cort.: 19.19 7fe Into: MWD Survev Survey Survey Inclination Course True Vertical Vertical Coo rdinates Clos ure Dogleg Builtl Walk Geographic Tool Depth Azimuth Direction Length Depth Section NIS E/W Distance Angle Seventy Rate Rate Coordi nates Lak tude Longitude T e ft d d ft ft ft ft R ft d 4/100' 4/100' 41100' Northi Easti 0 0.00 0.00 0 0.00 0.00 0.00 0.00 W 0.00 2433922.51 2433922 38 317399.53 317399 48 N60 N60 39 29.5473 39 29 5459 W 151 1 4.1009 W751 14 1023 20' Conduetw 105 113 0.19 0.20 205.00 205.00 105 8 10500 113.00 0.14 0.16 0.15 S 0.18 S 0.07 W 0.08 W 0.18 0.18 . 2433922.33 2 4 . 317399.44 317399 33 N60 N . 39 29.5456 3929 5438 . W 151 1 4.1025 1048 1 4 1 259 0.50 1 207.00 94 259.00 0.82 0.95 S 0.51 W 0.22 2433921.57 . 317399.00 N60 . 39 29.5380 . W 151 1 4.1111 17 380 0.60 21 213.10 63 17 379.99 1.55 1.81 S W 1.03 W 0.32 2 1.17 2433920.72 317398.78 317398.47 N80 N60 29.5341 3929.5295 5215 Wt 114.1156 W15114.1215 1284 W 1 4 500 10 1.80 19740 179.90 60 W 499.97 3.69 4.12 S W 1.54 W 1.37 9 2433916.42 17398.12 317397,92 4 80 N60 N80 39 3929.5068 29 4847 . W15114.1319 W15114 1288 620 2.50 3.00 173. 175.00 60 619.86 8.78 9.22 S 1 W 1.10 W 124 0.84 2433918.18 2433913.31 433909 82 317398.0 317398.29 317398 71 N60 N80 . 39 29.4565 39 29 . W 151 1 4.1230 W 1 1 1 41133 BBO 740 410 5.20 17 168.40 60 739.54 17.34 17.68 S 0.28 E 1.86 . 2433904.83 2433897 . 317399.53 317400 98 N60 N80 3929.3732 3929 W15114.0953 0642 W15114 804 866 7 9.00 167.20 62 864.51 24. 33.20 33.14 S 3.84 E 2.59 . 2433889.32 . 317402.86 N60 . 39 29.2210 . W 151 1 4.0238 9789 1 3 0 2 N60 39 28 9858 . 9277 W151 1 3 992 13.60 169.10 63 988.10 57. 57.02 8.63 E 4.13 2433865.36 243384 1 3174 7. 7 1741 N . . Wt 11 8589 1 1118 1 .90 19.80 18720 166.80 63 1108.67 93.95 92.55 S 16.53 E 4.61 . 2433829.72 . 317414.62 N60 39 28.6359 . W 151 1 3.7693 W 1 1245 23.50 188 167.90 63 1226.96 140.11 137.55 S 26.83 E 4.02 2 2433784.57 2433758 4 317424.23 17 N60 N 39 28.1928 27 W 151 1 3.5625 4572 W1 11 1 7 1370 27 30.70 1 169.10 63 1282 1337.95 1 197.42 1 7 193.80 S 37.83 E 508 . 2433728.16 2433695 81 317434.35 N60 . 39 27.6369 . W 151 1 3.3420 2102 1496 32.00 168.50 6 1 1445.00 263.8 258.87 S 51.25 E 0.70 . 2433662.90 317446.76 N60 39 26.9981 W 151 1 3.0726 9377 12 1623 31.50 1 166.70 64 14 1553.14 330.44 323.96 6 .27 E 1.14 243383tl. 2433597.59 17 317459.77 N60 3926.3571 . W15112.7914 2 1748 33.50 166.20 63 1659.02 396.5 388.56 S .7 E 2.88 2 2433532.77 2 317474,25 7 N60 3925.7209 W15112.4807 2 3122 1 1 1 0 42 2433465 81 317489 88 N60 39 25 0639 . W 151 1 2 1464 1873 33.20 166.10 62 1763.41 46 . 4 5.28 97.42 E . . . 4 . . 1 1 1998 32.50 166.00 62 1868.51 5 .2 21.08 S 113.19 E .9 2433399.77 2 317504.63 3171 N60 N 39 24.4159 24 W 151 1 1.6301 1 871 2121 35.00 187. 168.00 62 1971.09 601.07 587.19 S 128.42 E 3.04 2433333.44 . 317518.84 N60 . 39 23.7649 . W 151 1 1.5244 1 71 1 13 51 2433262 317533 05 N60 39 23 0686 W 151 1 1 2171 2248 34.30 167.10 6 2075.47 67 .41 57. 143.74 E . . . 92 17 . . W1 1 1 1 0888 11 2374 33.50 1 168.10 63 2180.05 743. 726.67 158.17 E 0.83 2433193.52 . 317546.42 N60 39 22.3913 . W 151 1 0.9276 1 ~a va• s~n.o. ~ 2437 2503 32.71 1 168.04 66 2288.06 814.22 795.66 S 172.85 E 4 0.75 2433124.32 2433087 97 317560.03 317587 09 N60 N80 39 21.7119 3551 ~ 21 83 W 151 1 0.6330 W 151 1 0 4801 72 2635 33.10 166.20 166.50 63 2399.32 851 885.23 1 865.06 S . 187.92 E 2.04 . 2433054.70 . 317574.02 N60 . 39 21.0286 . W 151 1 0.3307 5110 1737 W 2760 34.40 187.7 167.70 62 2502.74 955.44 933.57 S 203.23 E 0.32 243302(1.38 2432985.96 2 1 317581.32 317588.27 317 1 N80 N60 N 20.8917 39 20.3538 20 0067 . 7 W 151 1 0.0236 8748 W t t 059 2824 2887 1 34.30 188.50 167.80 63 2607.75 1 26.87 1003.47 S 217.93 E 0.70 . 2432915.85 . 317601.88 7 N60 . 39 19.6655 19 . W 151 0 59.7287 151 059 5847 3014 33.50 168.20 64 2713.04 1097.87 1073.04 S 232.21 E 1.07 243288 2432846.08 317615.08 N60 39 18.9804 4 7 9 . W 151 0 59.4423 W 1 1 059 3048 77 3140 33.30 1 x.00 168.80 63 27 2818.29 1 1167.13 1 1140.97 S 245.72 E .77 0.17 2432811.98 2432777.94 317821.41 317627.54 N80 N60 O 391 .6 5 39 18.3114 91 81 . W 151 0 59.1712 0371 W751 059 32D3 3267 3230 32.90 188. 168.70 64 4 2925.16 1 1235.73 1 1208.25 S 259.20 E 0.94 2432744.38 2432710.47 2432876 33 317633.71 317639.97 317646 49 NB N60 N80 3 7.8 39 17.6489 3917 1 7 . W 151 0 58.9010 W151 058 7596 3331 3394 .90 33.30 187 168.10 64 63 3031 ~67 1 .4 1304.90 1242.29 S 1275.94 S E 273.40 E 0.66 . 2432642.57 . 317653.12 N60 80 . 39 16.9823 ~ 18 843 . W 151 058.6161 4835 W 151 058 3522 32.60 168.90 64 138.69 1375.12 1 1344.56 288.31 E 2.25 2432808.02 2432573.73 7880.1 317666.97 N N60 80 . 39 16.3066 3915 . W 151 058.3170 1798 W151058 364 32.10 166.50 63 3245.34 1442.21 1410.10 S 302.65 E 0.94 2 2432507.99 1 .31 317680.29 17 N N60 . 39 15.6612 1 . W 151 058.0293 8853 W t 2 3775 32.50 167.90 63 3352.33 1510.1 1476.65 318.51 E 1.75 2432441.20 2432 317695.12 17702 N60 39 15.0058 14 14 . W 151 0 57.7111 5829 Wt 1057 3902 32.00 1 .80 167.50 64 3459.71 1578.42 1542.79 5 E 333.48 E 0.75 2432374.84 317709.06 N60 . 39 14.3545 4 . W151 0 57.4109 2702 4027 180 31.40 167.80 62 3566.12 1644.01 1606.92 S 347.26 E 0.41 2 2432310.51 24 227 1771. 317721.84 317728 12 N N60 N80 3913.7229 1 4109 W 151 0 57.1345 9989 W 4153 28.10 188.1 166.70 63 1 3675.08 1707.24 1668.69 S 360.74 E 3.96 3 2432248.54 . 317734.36 N60 39 13.1146 . W151 056.8642 T328 4279 27.3 167.80 3 786. 17 5.32 1725.36 S 373.4 0. 2432191.69 317746.23 N60 39 12.5566 1 W151 056.6085 A860 4342 4405 .4 25.3 1 167.10 63 11 3899.80 " 1 1821.24 1779.94 S 385.65 E 1.76 1 2432136.93 1 1. 317757.55 N60 39 12.0191 W151 056.3644 4468 4532 24.4 23.5 168.6G 167.90 _ - _ 3 G ~ G4 956.97 > ~O1 ~ 46 1847.71 ~ 187369 1805.82 S 1831 25 S 391 23 396.52 E 1.47 2432085.46 317767.62 N60 39 11.5138 W151 056.1465 • t>~: 50-133-20554-01-00 ~e Des: A - 028083 21' AGL (179' KB Elevation) 317,399.46 2,433,922.36 60° 39' 29.546" N g:, 151°01' 4.102"W d: 05:00 hrs 9/27/2007 leached: 10/3/2007 Released: 10:00 hrs 10/12/07 TOD Of Cement @ 4,200' MD 794' above 9-5/8" window BC-16RD Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. L-80 40 ppf Too Bottom 0' 5,188' 0' 4,838' Cmt original well wl 209 Bbls 12.5 ppg of class G. Milled Sidetrack window 4,994' - 5,004' DPM Production Tubing 3-112" L-80 9.3 ppf EUE Two Bottom MD 0' 8,402' TVD 0' 8,581' - 7 Excape modules placed. - Red control line for top 6 modules. -Green control line for bottom module. -Disappearing flapper valves below modules 2 through 5. - Reclosing flapper valves below modules 6 & 7. MD(RKB) TVD Module 7 - 8,551' - 8,561' 7,750' - 7,759' Module 6 - 8,606' - 8,616' 7,802' - 7,812' Module 5 - 9,011' - 9,021' 8,186' - 8,196' Module 4 - 9,058' - 9,068' " 8,231' - 8,240' Module 3 - 9,147' - 9,157' 8,316' - 8,325' Module 2 - 9,192' - 9,202' 8,359' - 8,368' Module 1 - 9,302' - 9,312' 8,464' - 8,474' Conductor 20" K-55 133 ppf Toe Bottom MD 0' 103' TVD 0' 103' Surface Casino 13-318" K-55 88 ppf Tom Bottom MD 0' 2,500' TVD 0' 2,285' Cmt w1870 sks of Type 1, Well Name & Number: BC-16RD Lease: Beaver Creek Field County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Perforations (MD): 8,551' - 9,312' Perf (TVD): 7,750' - 8,474' An le KOP and Depth: 13.9 ° 5,004' Completion Fluid: An le/Perfs: Dated Completed: Ground Level (MSL): 158' Prepared By: Kevin Skiba Last Revison Date: 1 1 /712 0 0 7 Marathon Oil Company Page 1 of s Operations Summary Report Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Spud Date: 9/18/2005 Event Name: RE-ENTRY Start: 9/20/2007 End: Contractor Name: GLACIER DRILLING Rig Release: 10/5/2007 Group: Rig Name: GLACIER DRILLING Rig Number: 1 i Date F om - To Hour tio rations ri f O C d I D ~ Ph p r s o esc n o pe ase ; e Code 9/22/2007 10:00 - 06:00 20.00 RURD_ RIG_ MIRU PJSM; Off load at BC-16,set mud pump, pits, spot gen. house, boiler house, water tank, hanson tank, scope up sub base, over BC-16, set mud boat, carrier, and level, continue receiveing loads, set up camp trailers, hook up electrical power, derrick inspection and service lines `~ and sheaves, Run water line from well to water tank, set cutting tank, PJSM; Begin crane work, set derrick house, sub base, wings and stairs, C'-' a ,~ G ra I , ^ ~ i ~ fuel tank, raise derrick, make up standpipe, crane in grey iron, on j ~ '~ drillers side, put up wind walls, set in drillers side doghouse, set stairs, ~SV~ ` ~^ set grey iron on off drillers side, set in Flow line, put in panic, off side stairs, raise gas buster. 9/23/2007 06:00 - 06:00 24.00 RURD_ RIG_ MIRU PJSM; Crane in back floor piece, and three back wind walls, pin all windwalls, put up doghouse lites, wire up top doghouse lites, finish hyd. loop, scope up derrick, install trip tank, dresser sleeves, rig up pump #3, catwalk, beaver slide, Epoch trailer, welding shop, water tank, new generator house, fire boiler, replace two inch steam hoses, pull wires, to top drive, chnage pump liners to 5" -#1 and #2 mud pumps, rig up top drive, rig up kill line, adjust linkages for pump suction. 9/24/2007 06:00 - 10:00 4.00 CIRC_ CFLD XMBO Rig up to pump down tubing, take returns out annular valve, thru choke manifold. 10:00 - 10:30 0.50 PULL_ EOIP XMBO Pull back pressure valve. 10:30 - 11:00 0.50 TEST_ EOIP XMBO Pressure test mud manifold on rig floor to 500 psi.10 min. 11:00 - 13:00 2.00 INSPCT RIG_ MIRU Work on rig audit, put steam around rig, pur clamp on saver sub, 13:00 - 13:30 0.50 WORK ELEC PLUGAB PJSM; Rig up to wire line fill well with 6% KCL. 13:30 - 16:00 2.50 WORK ELEC PLUGAB PJSM; Make up cutter and RIH to 5407' and cut 3 1/2 tubing. 16:00 - 17:30 1.50 CIRC_ CFLD PLUGAB PJSM; Circ. one annular and tubing volume. at 4 bbls. min.86 stks.=225 psi 17:30 - 18:00 0.50 NUND TREE PLUGAB Install back pressure valve in tree. 18:00 - 04:30 10.50 NUND TREE PLUGAB Nipple down tree, nipple up BOP. 04:30 - 06:00 1.50 TEST_ BOPE PLUGAB Pull back pressure valve and install two way check, test BOP. 9/25/2007 06:00 - 11:00 5.00 TEST_ BOPE PLUGAB Test Bop-250-2500psi for 5 min.test annular, pipe rams, inside, outside kellyvalves, HCR, floor, and dart valves, upper, lower, kelly cock, check, blind rams, Choke manifold valves 1-12, Koomey pertomance test, rig down test equipment,pull two way check in hanger. 11:00 - 12:00 1.00 RURD_ CSG_ PLUGAB PJSM; Rig up weathertord to pull 3 1/2 tubing, back out lockdowns. 12:00 - 21:30 9.50 RUNPU TBG_ PLUGAB PJSM; Pull hanger, fill hole took 40 bbls.Lay down 3 1/2,tubing, 184 jts. and 3.72' cut off, chem. injection mandrel, hole taking 1 1/2 bbls. hour. 21:30 - 22:00 0.50 RURD_ CSG_ PLUGAB PJSM; Rig down Weatherford tongs. 22:00 - 23:30 1.50 RURD_ RIG_ PLUGAB PJSM; Rig up floor for drill pipe, spinners, elevators, slips, tongs. 23:30 - 02:30 3.00 TEST_ BOPE PLUGAB Rig up test IBOP, dart valve,annular, and varibles with 5" drill pipe, to 250 psi-2500 psi.rig down test equip. install wear bushing. 02:30 - 03:00 0.50 REPAIR RIG_ PLUGAB Repair hyd. on Top Drive. 03:00 - 06:00 3.00 PULD_ DP_ PLUGAB Pick up junk mill, scraper, 5" HWDP, 5" drill pipe RIH. 9/26/2007 06:00 - 12:30 6,50 PULD_ DP_ PLUGAB PJSM; Measure rabbit and pick up 5" drill pipe, RIH with 8 1/2 mill and scraper. 12:30 - 13:30 1.00 CIRC_ CFLD PLUGAB Circ. bottoms up 13:30 - 18:00 4.50 TRIP_ DP_ PLUGAB PJSM; POOH with drill pipe and lay down BHA 18:00 - 19:00 1.00 REPAIR RIG_ PLUGAB Repair Hyd. elavators. 19:00 - 23:00 4.00 TRIP_ DP_ PLUGAB Make up Halib.EZSV and RIH with drill pipe. 23:00 - 23:30 0.50 SETREL PLUG PLUGAB Set retainer at 5390' Up wt.=130K Dn. wt.=90K 23:30 - 00:00 0.50 TEST_ PLUG PLUGAB Test annulus to 500 psi EZSV held. 00:00 - 00:30 0.50 SAFETY MTG_ PLUGAB Pre job safety meeting with BJ. 00:30 - 01:00 0.50 RURD_ CMT_ PLUGAB Space out drill pipe to work thru Hydril. test lines sting back in retainer 01:00 - 01:30 0.50 PUMP CMT_ PLUGAB Pump injection rate .50 bbl.=34 psi, 1.0 bpm=535 psi, 2.0 bpm=903psi Printed: 11/30/2007 2:56:59 PM Marathon Oil Company Page 2 of s Operations Summary Report Legal Well Name: Common Well Name Event Name: Contractor Name: Rig Name: BEAVER CREEK 16 BEAVER CREEK 16 RE-ENTRY GLACIER DRILLING GLACIER DRILLING Spud Date: 9/18/2005 Start: 9/20/2007 End: Rig Release: 10/5/2007 Group: Rig Number: 1 Date From - To Hours Code Cod Phase 9/26/2007 01:00 - 01:30 01:30 - 02:30 02:30 - 04:00 04:00 - 06:00 9/27/2007 06:00 - 07:00 07:00 - 07:30 07:30 - 08:30 08:30 - 13:30 13:30 - 15:30 15:30 - 16:00 16:00 - 16:45 16:45 - 19:00 19:00 - 20:00 20:00 - 22:30 22:30 - 01:00 01:00 - 04:00 04:00 - 06:00 9/28/2007 06:00 - 09:00 09:00 - 09:30 09:30 - 10:30 10:30 - 14:00 14:00 - 15:30 15:30 - 17:30 17:30 - 20:00 20:00 - 21:00 21:00 - 05:00 ~~.~ ~~ Z~ 05:00 - 06:00 9/29/2007 06:00 - 07:00 07:00 - 07:30 Description of Operations 0.50 PUMP_ CMT_ PLUGAB 3bpm=1244 psi. 1.00 PUMP_ CMT_ PLUGAB Unsting from retainer, pump 5 bbl fresh water, and start cement,Pump with hydril closed and holding 800 psi back pressure thru choke for 81 bbls, sting back into retainer, continue displacement, shutdown with total of 108 bbls displaced, pressured up to 1500 psi, calculated 7 bbls. cmt. under retainer. Cmt in place @ 0220 hr. Est.TOC-5186' Cmt wt.15.8 # 1'.50 PUMP_ CMT_ PLUGAB Unsting from retainer with 900 psi, bled off to 19 psi, POOH to 5186' ' reverse out 1 1/2 drill pipe volumes, Got 20 bbls. cmt back to surface, pump wiper ball down drill pipe long way. 2.00 TRIP_ DP_ PLUGAB POOH with Halib.running tool. 1.00 TRIP_ DP_ PLUGAB Continue Poh with Halliburton EZ cementer running tool on 5 "drillpipe. Lay down same 0.50 SERVIC RIG_ PLUGAB Lube carrier ,crown, blocks and Top Drive 1.00 PULD_ BHA_ PLUGAB PJSM: M/U 8 1/2mill and scrapper HWDP and Jars 5.00 PULD_ DP_ PLUGAB Rack Tally P/U and drift 5" drillpipe and RIH to 3877' 100jts 2.00 TRIP_ DP_ PLUGAB Continue RIH with 5 "drillpipe to 5150' break circulation and tag up cement at 5188'/ Shut pumps down and set 20k down on cement plug. confirm hard cement. Top of cement at 5188' = 202' of came v 0.50 CIRC_ MUD_ PLUGAB Circulate B/U at 5188' trace of cement returned over shakers 0.75 TEST_ CMT_ PLUGAB Test cement plug 9 5/8 csg.at 5188' 1500psi/30min. test good 2.25 TRIP_ DP_ PLUGAB PJSM; POH with 5 "drillpipe from 5188' 1.00 TRIP_ BHA_ PLUGAB POOH with HWDP Lay down drilling jars, mill and scraper. 2.50 WORK ELEC PLUGAB PJSM; Rig up wireline, run junk basket and gage ring 8.50.POOH 2.50 WORK ELEC PLUGAB PJSM;Arm baker setting tool make up Haliburton EZSV RIH W/ wireline, set plug.Top of plug at 5017' wireline measurements. 3.00 MILL_ WNDW SIDET PJSM;Pick up make up ipstock window mill BHA. 2.00 MILL_ WNDW SIDET RIH with 9 5/8 window mill assy. ~ 3.00 TRIP_ DP_ SIDET Continue RIH with Mill/whipstock assy, Pulse test MWD. No Pulse at 2750' RIH to 4970' 0.50 CIRC_ MUD_ SIDET Circulate Displace Hole with 8.8ppg flow pro mud 365bb1s 1.00 CIRC_ MUD_ SIDET MWD failure No pluse, attempt at 300gpm,350,400, 450, 500, and 550 gpm. Increase rate to 625gpm. No pluse. Ck surface lines and MWD unit. no problem. 3.50 TRIP_ DP_ SIDET Pump dryjob , poh (MWD failure) . 1.50 TRIP_ BHA_ SIDET Stand back HWDP and drillcollars. UD Bumpersub and MWD. Note found large chunks of cement on top of pulsar. Cement appears to be from mud lines not drillpipe. 2.00 TRIP_ BHA_ SIDET P/U MWD#2 and Drillcollars .Pulse test MWD at 440gpm 350/385psi. Good strong pulse. Continue rih HWDP 2.50 TRIP_ DP_ SIDET RIH W/ 5" drillpipe 5008' 1.00 SURVE DIR_ SIDET Orient Whipstock Bottom trip at 5008' Drill pipe measurement 8.00 MILL_ WNDW SIDET Mill window in 9 5/8 cs .start milling at 49~JJp wt.=148K Dn wt.=105K Rt wt=124K Tq.=10-14K Added 1 % EP tube to lower torque. Top of window at 4994' bottom of window at 5004' Depth correction drill pipe measurement. 1.00 DRILL_ ROT_ SIDET Drilling new hole from 5004'- 5034' Up wt.=148K Dn. wt.=105K Rt wt.=124K Tq.=8-13K Work mills through window and clean up. Stop rotation and circulation and work mills through window f- 5004-5034' Window in good shape no problems. 1.00 CIRC_ MUD_ SIDET Circulate 30bb1 hi vis sweep, Condition mud for FIT test at 5034' 0.50 TEST LOT_ SIDET Peform FIT W/ 8.8MW 4491TVD 1450psi = 15ppg EMW Printed: 11/30/2007 2:56:59 PM i ~ Marathon Oil Company Operations Summary Report Page 3 of 6 ~ Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Spud Date: 9/18/2005 Event Name: RE-ENTRY Start: 9/20/2007 End: Contractor Name: GLACIER DRILLING Rig Release: 10/5/2007 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date ~ From - To Hours Code Code Phase ~ Description of Operations 9/29/2007 07:30 - 10:00 2.50 TRIP_ DP_ SIDET Monitor well, pump dry job poh f-5034' 10:00 - 12:00 2.00 PULD_ BHA_ SIDET POH stand back HWDP lay down 6 3/4 drillcollars, bumper sub ,MWD and BOT running tool. 12:00 - 14:00 2.00 PULD_ BHA_ PR1 DRL Make up 8 1l2directional BHA. Scribe motor/mwd. rih and pulse test. 14:00 - 16:15 2.25 TRIP_ DP_ PR1 DRL Continue rih w/ 5" drillpipe to4950' Orient bha and exit window and wash to 5024' 16:15 - 17:00 0.75 DRILL_ SLID PR1DRL Drill ahead f 5034'-5068' Mud with E/P lube blinded shakers pull up into window. 17:00 - 19:30 2.50 CIRC_ MUD_ PR1 DRL Circulate and condition mud, Change shaker screens to 165 and shear mud 19:30 - 06:00 10.50 DRILL_ SLID PR1 DRL Directional drill ahead f 5068-5645' Up Wt. 140k Dn. Wt. 115k Rt. Wt. 130 Tq. 8-9k. 501gpm 850psi 255stks. Increase pump rate f- 390gpm to 500gpm as mud shears. ART=3.6 AST=3.4 Note C/O shaker screens 230/ 200 9/30/2007 06:00 - 12:00 6.00 DRILL_ SLID PR1DRL Directionally drill f-5645'- 6021 Up Wt 150k Dn. Wt. 115k Rt Wt. 135k Tq = 9.5-10.5k AST= .9 ART= 2.7 Max gas 280units. Increase tube tex to 2% .255stks 500gpm 1225psi. fluid losses to hole 1.5 bbls per hr. Note: Mud Leaking from pits into berm behind cuttings tank. Mix red dye in pits 1 and 2. no leaks. 12:00 - 13:30 1.50 DRILL_ SLID PR1DRL Directionally drill f-6021'- 6150' Up Wt. 155k Dn. Wt. 118k Rt.Wt 132k Tq 7-8k Ast= .4 Art= .5 13:30 - 14:00 0.50 CIRC_ MUD_ PR1 DRL Circulate B/U for wiper trip 260stks 510gpm 1250psi at 6150'. Shakers i clean up with 1.5x B/U 14:00 - 16:00 2.00 TRIP_ WIPR PR1 DRL Monitor well POH (wiper trip) F- 6150' - 4950' work various tight spots W/O rotation or pumping. Hole slick No gain, .1 bbl per hr fluid loss. Clean out #3 pit and prep for inspection 16:00 - 17:00 1.00 SERVIC RIG_ PR1 DRL Service carrier drivelines, top drive, blocks and crown. Slip drilling line. Replace gripper dies on top drive pipe handler. 17:00 - 21:00 4.00 REPAIR RIG_ PR1 DRL Inspect # 3 mud pit for cracks or holes. Found holes under suction line dump valves Grind and weld up. 4 ea 21:00 - 21:30 0.50 TRIP_ DP_ PR1 DRL RIH f-4950-6090' wash from 6090-6150' tag bottom no fill No gain/ Loss 21:30 - 06:00 8.50 DRILL_ SLID PR1DRL Directional drill f- 6150- 6660' Up Wt. 160k Dn. Wt. 125k Rt. Wt. 140k Tq. 8-9k 265stk 520gpm 1410psi. Ast = 4.7 Art= 8.2 Fluid loss 1-2bbl per hr. Max gas 246units 10/1/2007 06:00 - 12:00 6.00 DRILL_ SLID PR1DRL DirectionaNy drill f 6660'- 6966' Up Wt. 176 Dn. Wt. 124 RT.Wt 150 Tq 8-10k 266stks 520gpm 1545psi Art= 2.7hr Ast= 1.1 hr. Max gas 630units from 6648' 12:00 - 18:00 6.00 DRILL_ SLID PR1DRL Directionally drill f 6966' - 7227'. ART= 2.0 hrs AST= 1.8 hrs Pump hi-vis sweep at 6989' 300% increase in cuttings, clay,sand ,silt and coal. Increase tube tex to 3% at 7160 18:00 - 19:00 1.00 DRILL_ ROT_ PR1 DRL Drilled f/ 7227' to 7230'. PVT system locked up returned to drilling then #1 pump motor went down on 'high oil temp'. AST = .2 hrs 19:00 - 06:00 11.00 DRILL_ ROT_ PR1 DRL Directionally drill ahead f/ 7230', sliding first 20' of each stand to make letthand turn. 520gpm 1470psi. WOB= 5-10k. ROP varied while sliding due to conglomerate. Rotating ROP 40-120'/hr Swaco solids unit running taking mud wt f/ 9.3+ to 9.0+ ART= 3.0 hrs AST= 3.8 hrs ( found 2 faulty CAT 5 plugs on 'Rigwatch' pvt system) Printed: 11/30/2007 2:56:59 PM Marathon Oil Company Page 4 of 6 Operations Summary Report Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Spud Date: 9/18/2005 Event Name: RE-ENTRY Start: 9/20/2007 End: Contractor Name: GLACIER DRILLING Rig Release: 10/5/2007 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 10/2/2007 06:00 - 06:30 0.50 DRILL_ ROT_ PR1DRL Continue directional drilling f/ 7498' -7544' art=.5hr. No gain/Loss 06:30 - 07:30 1.00 CIRC_ MUD_ PR1 DRL Circ, pump hi-vis sweep. condition hole for wiper trip at 7544. 270stks 530gpm 1475psi. j 07:30 - 09:00 1.50 TRIP_ WIPR PR1 DRL Monitor well POH (wiper trip) f 7544'-6150' Hole slick , no tight spots. No gain loss 09:00 - 09:30 0.50 SERVIC EOIP PR1 DRL Service rig.Lube carrier drive lines, top drive and blocks 09:30 - 10:00 0.50 TRIP_ DP_ PR1 DRL RIH 6150- 7482' wash f- 7482-7544' Tag bottom no fill. No gain/loss 10:00 - 00:00 14.00 DRILL_ ROT_ PR1 DRL Directional drill f/ 7544' to 7965'. 530gpm 1500psi off bottom 100-200psi motor work upwt= 200k, dwn wt= 135k, rot wt= 164k 10-15k wob with ROP varying f/ 6'/hr to 80'/hr depending on conglomerates. ART= 8.3 hrs AST= 2.3 hrs 00:00 - 06:00 6.00 DRILL_ ROT_ PR1 DRL Directional drill f/ 7965' to 8125'. Same parameters. ART= 4.0 hrs AST= .6 hrs 10/3/2007 06:00 - 12:00 6.00 DRILL_ ROT_ PR1 DRL Continue directional drilling f/ 8125'-8365' Up Wt.207k Dn. Wt.140k Rt. Wt168k Tq 10-11 k Art= 5.1 Ast= 0 . 270stks 532gpm 1650psi. ROP 12:00 - 18:00 6.00 DRILL_ ROT_ PR1 DRL Directional drill 8365' - 8618' Up Wt 210k Dn. Wt.136k Rt. Wt 174k Tq 10-11k. 270stks 532gpm 1650psi Art= 4.5 Ast= 0 Start MI Centrifuge van 0800hrs-1500hrs cut Mud wt.from 9.3 to 9.1 Add 1 % tube tex for torque 5% total. Pumped Hvy hi- vis sweep at 8364'. Sweep returned with 300% increase in cuttings. # 1 pump motor shut down, repair ESD. 18:00 - 00:00 6.00 DRILL_ ROT_ PR1 DRL Directional drill f/ 8618' to 8840' Up wt= 216k dwn wt= 140k rot wt= 177k trq= 11-12k, W06= 15-17k ROP= 30-50'/hr, rot rpm 70-75, 520gpm 1700psi w/ 200psi motorwork. ART= 4.9 hrs AST= 0 hrs Pumped 30bb1 hi-vis sweep at 8618' which brought back double amount of cuttings. Will swap shaker screens f/ 230 to 270's. 00:00 - 06:00 6.00 DRILL_ ROT_ PR1 DRL Directional drill f/ 8840' to 9024'. Upwt= 225k Dwnwt= 150k rtwt= 185k W06= 16k ROP= 30-80'/hr ART= 5 hrs Started Swaco solids control unit at 0100 hrs mw= 9.3+ 10/4/2007 06:00 - 14:15 8.25 DRILL_ ROT_ PR1 DRL Continue directional drilling f/ 9024' to 9321' Up 250k Dn. wt. 150k Rt. Wt. 188k Tq. 12-13k No Gain/Loss Max gas 864units from 9146-9151. 1111 units from 9195-9197' 923units from 9296-9311' ROP 12-65 fph. Art = 7.5hr 14:15 - 15:30 1.25 CIRC_ MUD_ PR1 DRL Circulate B/U for samples to confirm T/D as per MOC Geo Dept at 9321' .Decision made to continue drilling to new T/D of 9421' as per MOC geo dept. Had drilling break with 923units of gas from 9311' 15:30 - 18:40 3.17 DRILL_ ROT_ PR1 DRL Drill ahead f/ 9321' to 9421' TD No drilling breaks. Minor losses +/- 5bbls/hr ART= 3.0 hrs 18:40 - 19:45 1.08 CIRC_ MUD_ PR1DRL Circulate bottoms-up. No gas shows 35 units. Call Houston confirm TD 9421' 19:45 - 22:45 3.00 TRIP_ WIPR PR1 DRL PJSM. Wiper trip back to 7483'. Hole good with minor overpull at 8600' and 7620'. RIH had +/- 15' fill. 22:45 - 02:45 4.00 CIRC_ MUD_ PR1 DRL Circulate, BU gas 200 units, pumped 30 bbl hi-vis pill double cuttings returned. Continue circulating hole clean. 02:45 - 06:00 3.25 TRIP_ DP_ PR1 DRL Pump dry job. Drop 2-1/4" DP drift. TOH. SLM 10/5/2007 06:00 - 09:15 3.25 TRIP_ DP_ PR1 DRL Continue TOH SLM f/ logs. No correction SLM No Gain. 1 -2 bbl per hr .loss to hole 09:15 - 11:30 2.25 TRIP_ BHA_ PR1DRL PJSM: Stand back HWDP, and jars. Lay down monels, mwd, pony collar and stab. Break bit out and lay down Motor. Printed: 11/30/2007 2:56:59 PM • • Marathon Oil Company Page 5 of 6 Operations Summary Report Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Spud Date: 9/18/2005 Event Name: RE-ENTRY Start: 9/20/2007 End: Contractor Name: GLACIER DRILLING Rig Release: 10/5/2007 Group: Rig Name: GLACIER DRILLING Rig Number: 1 :Date i From - To Hours Code Phase Description of Operations .Code 10/5/2007 11:30 - 14:00 2.50 PULD_ LOG_ PR1 EVL PJSM: Make up Shuttle assy and load Quad/combo logging tools RIH Flow test shuttle assy at 350' 14:00 - 20:00 6.00 TRIP_ DP_ PR1 EVL Continue RIH with Shuttle assy on 5" Drillpipe. Take pressure checks at 2460', 4960, 7212', 9293'. RIH tag at 9395'. Wash fill to bottom.. 20:00 - 21:50 1.83 CIRC_ MUD_ PR1EVL CBU at 4 bpm. 51 units gas 21:50 - 22:05 0.25 CIRC_ MUD_ PR1EVL Pull to 9304' and pump dart to release logging tools. Pressure indicated good launching of tools. 22:05 - 03:35 5.50 LOG_ OH_ PR1 EVL Start logging with Weatherford Quad-Combo. Initial pick-up pipe was stuck. Pumped at 1 bpm and put in RH torque pipe came free. Continue logging openhole f/ 9406' to 5004' and cased hole to 4717' @ 30'/min. Hole fill indicating formation taking +/- 2 bbls/hr 03:35 - 06:00 2.42 TRIP_ DP_ PR1EVL TOH w/ logging tools. 10/6/2007 06:00 - 06:30 0.50 TRIP_ DP_ PR1 EVL Continue poh with Shuttle assy on 5 " drillpipe- 06:30 - 07:45 1.25 PULD_ LOG_ PR1 EVL Lay down shuttle assy and quad combo logging tools. Confirm logging data Complete 07:45 - 08:30 0.75 PULD_ BHA_ PR1 EVL Lay down 8 jts 5" HWDP 08:30 - 09:00 0,50 SERVIC EOIP PR1 EVL Service rig, Carrier, Blocks, top Drive, Crown. 09:00 - 11:30 2,50 TRIP_ DP_ PR1EVL M/U 5" mule shoe and RIH W/ 5" drillpipe to 4950' 11:30 - 13:00 1.50 CUT_ WIRE PR1EVL PJSM; Slip and cut Drilling Line 13:00 - 15:00 2.00 WAITON ORDR PR1 EVL Wait on MOC Geo. Dept. For Pick points RFT 15:00 - 16:00 1.00 TRIP_ DP_ PR1 EVL RIH to 7006' Park Drillpipe for RFT loggs 16:00 - 19:30 3.50 RURD_ ELEC PR1 EVL C/O bails.lnstall top drive e- line sheave assy R/U pack off P/U RFT tools. and e- line. 19:30 - 23:00 3.50 LOG_ OH_ PR1 EVL RIH to 160' take weight check. Weatherford's line tension indicator module not working. Problem with calibration switches and soffinrare not responding. Discuss alternate options with town engineers. Final attempt to fix the problem and module started working. 23:00 - 06:00 7.00 LOG_ OH_ PR1EVL RIH with RFT tools. Moving drillpipe every 10-15/min. No overpulls. Log RFT points in zones LB-20, LB-23, and LB-25. RIH to bottom. Log LB-33, LB-31, LB30 No further problems with tension indicator. Hoie taking +/- 1 bbl/hr 10/7/2007 06:00 - 08:00 2.00 LOG_ OH_ PR1 EVL Continue logging with Weatherford RFT Test L629, LB-28 08:00 - 08:45 0.75 LOG_ OH_ PR1 EVL Tool Pluged POH with e- line. Lower centralizer hung up at drillpipe mule shoe. Circulate at 4bbls min 285psi and work a-line, no progress. P/U and surge drillpipe. Tool came free. 08:45 - 10:30 1.75 LOG_ OH_ PR1 EVL POH with E- line. Inspect RFT tool, No damage .Clean Screen and service Tool. 10:30 - 15:00 4.50 LOG_ OH_ PR1 EVL RIH W/ E-line Continue log RFT pressure points LB-30,L6-21, LB-29 ,LB-23 Total of 9 pressure tests taken From 10;30 to 1500hrs. 15:00 - 16:00 1.00 LOG_ OH_ PR1 EVL POH w/ E-line to clean screen on RFT tool 16:00 - 16:30 0.50 LOG_ OH_ PR1 EVL R/D pack off assy. Clean screen and service RFT tools. M/U pack off assy 16:30 - 21:10 4.67 LOG_ OH_ PR1EVL RIH w/ E-line. Continue taking Pressure points RFT log. LB-25, LB-21 LB-20, LB-16 and LB-17 . From 1300hrs to 1430hrs. no fluid loss to hole 21:10 - 00:00 2.83 LOG_ OH_ PRIEVL PJSM. POH w/ logging tools. Hung up again at mule shoe. Pumped at 130 gpm / 260 psi and dislodged tools. Try again and came though okay. Pulled tighter than normal through DP tool joints to surface. Pull log tools from DP found 1" dia piece of SS in partially collapsed upper centrilizer spring. Tool otherwise looked good. LD tools. 00:00 - 01:15 1.25 CHANG EOIP PR1 EVL PJSM. Changeout to short bales. Remove 'bicycle' from topdrive. 01:15 - 02:45 1.50 TRIP_ DP_ PR1 EVL TOH and park mule shoe at 5042'. (bottom of window at 5004' ) Printed: 11/30/2007 2:56:59 PM ~ i Marathon Oil Company Page s of s Operations Summary Report Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Spud Date: 9/18/2005 Event Name: RE-ENTRY Start: 9/20/2007 End: Contractor Name: GLACIER DRILLING Rig Release: 10/5/2007 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 10/7/2007 02:45 - 04:30 1.75 PULD_ LOG_ PR1 EVL PJSM. PU logging equipment and tools. Removed 3 of 6 bow springs from each centralizer. 04:30 - 06:00 1.50 LOG_ OH_ PR1EVL RIH w/ a-line. Start taking RFT's in Upper Beluga. 10/8/2007 06:00 - 11:00 5.00 LOG_ OH_ PR1 EVL Continue logging with Weatherford RFT in Upper Beluga formation and Sterling 64. POH with E-line and lay down logging tools. Move to completion phase 1100hrs 10-7-2007 Printed: 11/30/2007 2:56:59 PM ~ ~ Marathon Oil Company Page ~ of 2 Operations Summary Report Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Spud Date: 9/18/2005 Event Name: ORIGINAL COMPLETION Start: 10/7/2007 End: Contractor Name: GLACIER DRILLING Rig Release: 10/5/2007 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 10/8/2007 11:00 - 13:30 2.50 TRIP_ DP_ PR1CSG 13:30 - 13:45 0.25 CLEAN_ RIG_ PR1CSG 13:45 - 14:00 0.25 RUNPU WBSH PR1CSG 14:00 - 18:30 4.50 TEST BOPE PRICSG 18:30 - 19:30 1.00 RUNPU WBSH PR1CSG 19:30 - 19:45 0.25 PULD_ BHA_ PRICSG 19:45 - 03:00 7.25 TRIP DP PR1CSG 03:00 - 06:00 ~ 3.00 ~ CIRC_ ~ MUD_ ~ PR1CSG 10/9/2007 06:00 - 16:30 16:30 - 17:30 17:30 - 18:00 18:00 - 21:00 10.50 TRIP_ DP_ PRICSG 1.00 TRIP_ BHA_ PRICSG 0.50 RUNPU WBSH PR1CSG 3.00 KURD RIG PR1CSG 21:00 - 21:15 21:15 - 22:30 22:30 - 00:00 00:00 - 00:15 00:15 - 06:00 10/10/2007 106:00 - 19:40 19:40 - 22:00 22:00 - 01:30 01:30 - 01:45 01:45 - 02:20 02:20 - 02:30 02:30 - 03:00 03:00 - 05:15 05:15 - 06:00 10/11/2007 06:00 - 12:00 12:00 - 17:00 17:00 - 21:30 0.25 SAFETY MTG_ PR1CSG 1.25 RURD_ CSG_ PRICSG 1.50 RUN_ CSG_ PR1CSG 0.25 SAFETY MTG_ PRICSG 5.75 RUN_ CSG_ PRICSG 13.67 RUN CSG PRICSG 2.33 CIRC_ MUD_ PRICSG 3.50 LOG CSG PR1CSG 0.25 RUN_ CSG_ PRICSG 0.58 RURD_ CMT_ PRICSG 0.17 SAFETY MTG_ PR1CSG 0.50 PUMP_ TRET PRICSG 2.25 PUMP CMT PR1CSG PJSM; POH with 5" drillpipe f- 5045' Clean Rig Floor PJSM; M/U test joint pull wear bushing, Set test plug Test BOPE 250/2500 10 min. all components passed. perform accumlator drawn test. Test gas alarms. LEL, H2s. and PVT/ Flow alarms. Test witnessed by Jeff Jones AOGCC. Note Ck valve failed Clean Cement out of valve and re test, ok. #1 choke valve Leaked , grease and re-test Ok Install wear bushing. Break down test tools. PJSM. PU bit and bit sub. TIH break circulation at window and 6450'. PU 12 jts drillpipe. W/R last jt to bottom. 15' fill. Circ/Cond hole and mud. Pump 40 bbl hi-vis sweep. BU gas 309 units max. Have Swaco Solids unit running knocking MW down to 9.4ppg Monitor well, Pump dry job POH UD drillpipe f 9421' total of 291jts POH lay down HWDP jars bit Pull wear bushing R/D Rig floor spinners, tongs, subs and 5" floor valves. C/O bails and elevators PJSM with all crews members and 3rd party personnel. Review procedures and hazards. RU EXPRO's control line sheave. Layout 7 EXCAPE modules and tubing on off drillers side in running order. PU shoe track and flow test. PU module #1, spaceout tubing and module #2. PJSM with relief crew members. Reivew same topics as above. Continue running EXCAPE modules and 3-1/2" 9.3# L-80 EUE casing to 2225' at 0600hrs Continue to run 3 1/2 excape casing f-2225'- 9393 Circ csg volume at 2250',4453 and 7000'. Run 3 1/2 csg to 9399' total of 283jts W/ 7 modules and3 control lines and one Sacf line Shoe at 9402' Float collar at 9364' Circulate bottoms-up. 5bpm 820 psi PJSM. Park EOP at 9394' RU Expro loggers. RIH with GR/CCL. TOH RD loggers. Need to move EOP down 10'. Add 10' pup and make final EOP mark (9402'). RD Weatherford. PJSM RU BJ cementing head. Start circulating 2bpm PJSM with all crews review plan forward, hazards and mitigations. Pump 100 bbls corrison inhibited mud. Pump 5 bbls H2O test lines to 4000psi. Okay. Pump 40 bbls spacer followed by 355 bbls 1720sx class G Cement with 1.2% BA-56 + .03% CD-32+.05% EC-1=.02% SMS+1gps FP6L= Yield of 1.161ft/sx. Pump 5 bbl H2o to launch plug.Displace with 76.2bbls 6% KCL. Bumped plug at 2200psi inc to 3000psi hold pressure 3 min. Bleed off /floats held Cement in place at 0511 hrs. 85.5 bbls of displacement. 100% returns. 0.75 RURD_ CMT_ PR1CSG R/D BJ cement head and lines. 6.00 NUND BOPE PR1CSG Blow down mud lines Prep bop for N/D Clean pits Wait on Cement 5.00 NUND BOPE PR1CSG PJSM; Strip riser ,set slips with 85K on 3 1/2 csg. make cut on 3 1/2 Lay down cut joint(7.55') Nipple down BOP off well head. Install pack off and test to 5000 psi f/ 10 min. 4.50 NUND TREE PRICSG PJSM; Install tree, test void to 5000 psi f/ 10 min., test tree to 10,000 psi f/ 10 min. freeze protect tree, pull two way check.lnstall Printed: 11/30/2007 2:58:26 PM ~ ~ Marathon Oil Company Legal Wetl Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date ~ From = To Operations Summary Report Page 2 of 2 BEAVER CREEK 16 BEAVER CREEK 16 ORIGINAL COMPLETION GLACIER DRILLING GLACIER DRILLING Hours ~ Code Code Phase 10/11/2007 17:00 - 21:30 4.50 NUND 21:30 - 06:00 8.50 RURD 10/12/2007 06:00 - 06:00 24.00 RURD 10/13/2007 106:00 - 10:00 I 4.00 Spud Date: 9/18/2005 Start: 10/7/2007 End: Rig Release: 10/5/2007 Group: Rig Number: 1 Description of Operations TREE PR1CSG backpressure valve. RIG_ RDMO PJSM; Start rigging down. Rig down floor, load out rotary tools, pickle test pump, remove bails and elevators, load out #3 pump house, Clean pits, wash thru pop off lines, clean strainers in suction, pickle pumps, Rig down lower poor boy de-gasser, continue to rig down pits, service lines, PJSM; rig down top drive, Lay down strong back tum buckles, and torque tube, RIG_ RDMO Rig down GD-1,PJSM;Rig down beaver slid, stairs, BOP convex, Prep derrick board to scope mast down, Remove guy lines, from board, Rig down drillers console, rig down geronimo line, drain all charge and mixing pumps, Repair riser cable, Rig down cuttings box, prep hanson tank, PJSM; Scope down mast, hang service loop, chain off blocks, Pull wires, winterize brake flanges on draworks, PJSM;Crane operations, rig down stairs, flowline, gray iron, both dog houses, windwalls, Remove BOP convex, derrick house, sub base wings, fuel tank, Move out generator house, boiler house, lower derrick, put carrier on off jacks, drive off mud boat, flip up boat ramp, split, pits, hang up stairs, continue to make up loads, clean up pad, Wire heater in derrick house, Pull 3" X 20" adjusting bolts from grey iron diagnals, and mast tie down bolts and service them. RIG_ RDMO Move mud boat and sub base, Load out Mud pits, Sub Base, Release rig @1000 hrs.to SU43-gX Printed: 11/30/2007 2:58:26 PM A • Marathon Oil Company Page 1 of 3 Operations Summary Report Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Spud Date: 9/18/2005 Event Name: ORIGINAL COMPLETION Start: 10/12/2007 End: Contractor Name: GLACIER DRILLING Rig Release: 10/5/2007 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code I Phase Description of Operations ~ Code ~ 10/27/2007 08:00 - 09:30 1.50 SAFETY MTG_ PR1CSG Issue permit and hold Safety meeting. Discuss Expro JSA and other operations on pad. Discuss wet conditions. 09:30 - 10:00 0.50 RURD_ ELEC PR1CSG RU eline unit and PU CBL tool. 10:00 - 11:30 1.50 RUNPU ELEC PR1CSG RIH CBL. Tool stopped communicating. 11:30 - 12:15 0.75 RUNPU ELEC PR1CSG POH to change tools. 12:15 - 12:30 0.25 RURD_ ELEC PR1CSG Change CBL tool. 12:30 - 14:20 1.83 RUNPU ELEC PR1CSG RIH backup CBL tool. 14:20 - 14:30 0.17 LOG_ CSG_ PR1CSG Tag TD at 9,352'. Log repeat pass. 14:30 - 17:00 2.50 LOG_ CSG_ PR1 CSG Log main pass from 9352' to 4000'. TOC is at 4200'. 17:00-17:30 0.50 RUNPU ELEC PR1CSG OH. 17:30 - 18:30 1.00 RURD_ ELEC PR1CSG RD and release eline unit. 10/31/2007 11:30 - 11:40 0.17 SAFETY MTG_ CMPSTM Slips, trips, falls. High Pressure 11:40 - 11:45 0.08 PERF_ CSG_ CMPSTM perforate lower zone 9302-9312 feet.~Module went off at 3550# as planned 11:45 - 12:00 0.25 RURD_ STIM CMPSTM Shut in Expro perforating lines at wellhead. Leave location 11/1/2007 10:30 - 11:00 0.50 SAFETY MTG_ CMPSTM Slips, trips, falls. High Pressure.BJ pressure test to 9500#. Expro Well Test - PT to 4500#. Maximum treating pressure 8500#. Watch for flow lines, electrical lines. Use buddy system for safety/ evacuation in case of emergency. Use 3 second rule for decision making. Stop and think about what you are doing before you turn that valve (takes about 3 seconds). 11:00 - 12:00 1.00 TEST_ BOPE CMPSTM Warm up equipment / PT Expro Well Test - 4500# -failed. Replace o-ring, repeat to 4200#- passed. Blow fluid out of lines so will not freeze. PT BJ flow lines 9486# -passed 12:00 - 12:30 0.50 MIX FLD_ CMPSTM Mix gel. PH-11.8 12:30 - 13:00 0.50 PUMP_ FRAC CMPSTM 1st stage - 570# on WH. step up rate to 10.1 BPM Pressure 7600#. Pressure fluctuations until BHP jumps to 8500# -overpressure drops out pumps -bleed off 5-10 barrels 13:00 - 13:15 0.25 PUMP_ FRAC CMPSTM Stage 1 Pad -repeat Rate 10.1 BPM Pressure 7600# building to overpressure (8500#) - bleedoff 5-10 barrels 13:15 - 13:30 0.25 PUMP_ FRAC CMPSTM Stage 1 Pad -repeat rate 10.1 BPM Pressure - 6652 # and building. Overpressure -bleed off 13:30 - 13:37 0.12 PERF_ CSG_ CMPSTM shoot module 2 - (9191 feet to 9201 feet). Pressure -2590# . verified at surface 13:37 - 13:50 0.22 PUMP_ FRAC CMPSTM stimulate zone 2 - (9191-9201) feet. Pad -rate 12.1 BPM Pressure 6470#. Screened out with 50 BBL flush pumped. 32 BBL 8#/gal slurry in casing. Pumped 138 BBL clean fluid and 8800# sand. Call BJ coil 13:50 - 16:30 2.67 FLOW BACK CMPSTM Flow back through sand buster to tank. 49.4 BBL fluid recovered. No sand 16:30 - 17:00 0.50 SAFETY MTG_ CMPSTM slip /trips /falls. Need to pressure test coil BOP. Lighting, bear sighting 17:00 - 19:30 2.50 RURD_ COIL CMPSTM Rig up BJ Coil. PT BOP - 250 low 4500 - hi h. test successful 19:30 - TRIP_ TOOL CMPSTM wit coil to clean out sand. Cleaned out sand to 9220. Flapper deployed at that poin. At midnite start trip out of hole. Printed: 11/30/2007 2:59:42 PM • • Marathon Oil Company Operations Summary Report Page 2 of 3 Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Spud Date: 9/18/2005 Event Name: ORIGINAL COMPLETION Start: 10/12/2007 End: Contractor Name: GLACIER DRILLING Rig Release: 10/5/2007 Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date i From.- To Hours, Code I Code j Phase Description of Operations 11/2/2007 00:00 - 02:30 2.50 CIRC_ CFLD CTBG POOH with BJ CTU after circulating sand out of hole 02:30 - 02:45 0.25 RURD_ COIL CTBG Rig down CTU. Shut in well. 02:45 - 08:00 5.25 SECUR WELL CMPSTM shut down for night. 08:00 - 08:30 0.50 SAFETY MTG_ CMPSTM PJSM -Discussed slips /trips /falls /buddy system for safety /three second rule to think about what you are doing before you act or react. Emergency procedures, muster areas. spills and reporting spills 08:30 - 08:45 0.25 MIX_ FLD_ CMPSTM Hydrate linear gel for Frac fluid. PT BJ flowline to 7500# -good 08:45 - 09:00 0.25 PERF_ CSG_ CMPSTM Pressure up and perforate module 3 (9146-9156 feet). Module verified acoustically at 4480# 09:00 - 09:20 0.33 PUMP_ FRAC CMPSTM pump pad to break down formation. Rate - 9.6 BPM Pressure - 6580# Increased rate to 12.1 BPM Pressure 6721# Zone screened out when 6 ppg sand hit formation. Got 5400# of sand into formation. 14250# sand in casing. 15 BBL flush pumped when zone screened out. Top of sand fill should be approx. 7800 feet. Call BJ Coil 09:20 - 09:40 0.33 BLOWD CSG_ CMPSTM Flow back through sand buster. Died after approx.10 minutes. 09:40 - 11:30 1.83 SECUR WELL CMPSTM BJ CTU crew out of hours. Secure well until DOT legal. Call at 11:30 hours 11:30 - 14:00 2.50 SECUR WELL CMPSTM wait on crew 14:00 - 14:30 0.50 SAFETY MTG_ CMPSTM PJSM- slip /trips /falls /emergencies /muster area. Use the three second rule to think what you are doing before you do it. 14:30 - 16:00 1.50 CIRC_ CFLD CMPSTM rig up injector head, circulate methyl alcohol out of tubing, start in hole 16:00 - 20:30 .4.50 CIRC_ CFLD CMPSTM Circulate flex sand and Ottawa 20/40 sand out of casing to 9344 feet- justabove float collar. No flappers evident. Circulate 5 barrels -6%KCL at 1.25 BPM then start out of the hole at 19:15 hours 20:30 - 20:45 0.25 RURD_ COIL CMPSTM Rig dow BJ CTU. Circulate methanol out of tubing. Lay down injector head. Secure wellhead 20:45 - 23:59 3.23 SECUR WELL CMPSTM shut down for night. 11/4/2007 08:00 - 08:30 0.50 SAFETY MTG_ CMPSTM PJSM -slips /trips /falls. Use the buddy system in case of emergency to get each other out. Use the three second rule to think about what you are doing before you act or react to a situation. Reporting injuries / emergency contacts. 08:30 - 09:00 0.50 CIRC_ CFLD CMPSTM Mix Gel, pump 85 BBL gel to displace fluid in hole and BJ frac lines. Pad will be across Module 4 when it is perforated 09:00 - 09:05 0.08 PERF_ CSG_ CMPSTM Perforate Module 4 - 9057-9068 feet). Gun went off at 5490#-verified at surface and acoustical y 09:05 - 09:15 0.17 PUMP_ FRAC CMPSTM Fracture Zone 4 - 9057 to 9068 feet. Pump pad at 12 BPM and pressure of 6180#. Pump 6 #/gal slurry. Treatment went as designed. Clean fluid - 236 BBL and Sand-5977# ISIP -4400 PSI 09:15 - 09:30 0.25 PERF_ CSG_ CMPSTM Perforate Module 5 - (9010-9021 feet). Pressure 6550# -verified at surface and acoustics y 09:30 - 10:00 0.50 PUMP_ FRAC CMPSTM Frac zone 5 - 9010 feet to 9021 feet. Pumped pad at 16.1 BPM and Pressure -5748 psi. Frac went as planned. Max. slurry density 6# /gal. Clean fluid - 230 BBL Sand - 20,731 # ISIP- 4980 psi 10:00 - 10:07 0.12 PERF_ CSG_ CMPSTM Perforate Module 6 - (8606-8616 feet). Pressure to pert- 7650#. Perforation verified and surface and acoustically 10:07 - 10:30 0.38 PUMP_ FRAC CMPSTM Frac zone 6 - 8606 to 8616 feet. Pumped pad at 12.2 BPM and Pressure-5250 psi Zone stimulated as designed. Max. slurry density 6# /gallon. Total clean fluid pumped 130 BBL and sand - 5469# ISIP - 4964 PSI 10:30 - 10:37 0.12 PERF_ CSG_ CMPSTM Perforate Module 7 - (8550-8560 feet)_ Interval shat at 8540 psi. ~rified at surface and acoustically Printed: 11/30/2007 2:59:42 PM Marathon Oil Company Page 3 of 3 Operations Summary Report Legal Well Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Date From - To Hours Code:. Code Phase 11/4/2007 10:37 - 10:47 0.17 PUMP_ FRAC CMPSTM 10:47 - 11:00 0.22 BLOWD CSG CMPSTM 11:00 - 11:15 0.25 SAFETY MTG CMPSTM 11:15 - 12:00 0.75 RURD PIPE CMPSTM 12:00 - 12:30 0.50 SAFETY MTG CTBG 12:30 - 18:30 6.00 JET WTR CTBG 18:30 - 23:30 5.00 JET_ N2_ CTBG 23:30 - 23:59 0.48 RURD COIL CTBG Spud Date: 9/18/2005 Start: 10/12/2007 End: Rig Release: 10/5/2007 Group: Rig Number: 1 Description of Operations Pumped pad at 16.1 BPM and pressure - 6890 psi. Screened out when 4 # /gal slurry hit perforfations. Clean fluid into perforation - 127 BBL and 3079 # of sand placed into formation. 12,423# of sand left in casing (1651 feet of fill). flow back through sand buster. Died almost immediately. BJ frac crew rig down safety meeting. Lifting safety, rig down wellhead equipment first to move in coil equipment. Slips /trips /falls. Overhead equipment. Rig dow BJ frac equipment. Wellhead connections first so coil can get started PJSM -slips /trips /falls. Keeping clear of suspended overhead weights. Working under pressure /pressurized fluids/gasses. Noted depths of flappers and estimated top of sand in wellbore Displace methanol (23 BBL) out of coil. Start in hole. Circulate sand out of hole to bottom. TD - 9355 feet. Reached bottom at 18:00 hours. Numerous sand bridges. Did not see /feel any flappers. Pull tubing up to 7000 feet while circulating 1.5 BPM -fluid velocity 270 ft /min. Kick in Nitrogen to jet out fluid. Pump 750 scfpm to lift water. Drop rate to 500 scfpm and RIH to TD. JET across perforations to 5200 feet. Drop rate to 350 scfpm and RIH to jet across perforations. Jet back out of hole across perforations and POOH Rig down BJ CTU. Tum well over to Expro Well Test. Preliminary flow rate of 4.0 MMCFPD with 700 psi WH pressure ~- Printed: 11/30/2007 2:59:42 PM ti M Marathon MARATHON Oil Company December 3, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-421 Open Flow Potential Test Report Field: Beaver Creek Field Well: Beaver Creek 16-RD Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~~~ '~ 5 2007 Alaska Oil & Gas Cons. Cmmmissian Anchorage Enclosed is the Open Flow Potential Test Report 10-421 for well BC-16RD. The API# assigned for this well (on the Permit to Drill Sundry) was 50-133-20573-00-00. This sundry is submitted under the corrected API# 50-133-20554-01-00 which was verbally supplied by the AOGCC on 12/3/2007. BC-16RD is a Lower Beluga formation, 7 module Excape side-track well, spud on September 3, 2007. All 7 modules were perforated. The top 6 modules were fracture stimulated with module #1 screening off before formation breakdown occurred. If you have any questions or require additional information, please call me at (907) 283- 1371. Sincerely, .~ ~~~N~~ Kevin J. Skiba Production Technician Enclosures: 10-421 Open Flow Report ~~r/a5' cc: AOGCC Houston Well File Kenai Well File KJS DMD - d~~a- • STATE OF ALASKA ~I~~'v~ ~~~ ®~ z~Q7 ALASKA OIL AND GAS CONSERVATION COMMISS~~~ca Oil & Gas Cons. Comm;:_ GAS WELL OPEN FLOW POTENTIAL TEST REF~~~t: 1a. Test: ~ Initial Annual Special 1b. Type Test: Stabilized Non Stabilized Multipoint ^ Constant Time Q Isochronal ^ Other 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon OII Company 10/31/2007 207-125 3. Address: 6. Date TD Reached: 12. API Number: PO BOX 1949 Kenai, Alaska 99611-1949 10/03/2007 50-133-20554-01-00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. 21' KB , 158' MSL Beaver Creek 16rd Top of Productive Horizon: 8. Plug Back Depth(MD+TVD): 14. Field/Pool(s): 1,330' FSL, 2,622' FEL, Sec. 34, T7N, R10W, S.M. 9402' MD + 8561' ND Total Depth: 9. Total Depth (MD + TVD): Beaver Creek /Beluga Pool 1,381' FSL, 2,136' FEL, Sec. 34, T7N, R10W, S.M. 9421' MD + 8580' ND 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 317399.50 y- 2433922.51 Zone- 4 A-028083 TPI: x- 318452.03 y- 2431214.25 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 318921.25 y- 2431260.85 Zone- 4 Excape Completion Process (Multi-Zone, Frac Stimulated) 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 3.500" 9.3ppf, L-80 2.992" 9402' 9302'-9312', 9192'-9202', 9147'-9157', 9058'-9068', 9011'- 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 9021', 8606'-8616', 8551'-8561' (7 Excape Modules in MD) N/A N/A N/A N/A 20. Packer set at ft: 21. GOR cf/bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): N/A - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: at 2631 psi Estd SIWHP 24d. Barometric Pressure (Pa): ^ Tubing^ Casing 144 p° 3209 psia @ Datum 8561' NDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO2: % NZ: % HZS: Prover: Meter Run: Taps: 8551' MD 7750' ND 0.56 0.359 0.197 0 Facility 26. FLOW DATA TUBING DATA CASING DATA Prover Choke No. Line X Orifice pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow Size (in.) Size (in.) psig Hw F° psig F° Psi9 F° Hr. 1 • 3.826 X 1.000 1860 53 54 - - - - 3.83 2• 3.826 X 1.000 1828 56 54.6 - - - - 3.67 3• 3.826 X 1.000 1769 58 54.6 - - - - 3.67 4• 3.826 X 1.000 1715 61 53.5 - - - - 3.33 5• 3.826 X 1.000 1621 65 52.5 - - - - 4.58 N Basic Coefficient 24 H ~ Pressure Flow Temp. Gravity Factor Super Comp. Rate of Flow o. ( - our) h Pm Factor F g Factor Q Mcfd ~ Fb or Fp Ft Fpv 1. 80.9 53.4976635 1874.73 1.00 1.336 1.1308 4327 2. 81.2 55.29556944 1842.73 1.00 1.336 1.1265 4491 3. 84.3 56.27432807 1783.73 1.00 1.336 1.1251 4746 4. 87.2 57.12705139 1729.73 1.00 1.336 1.1230 4984 5. 92.1 58.41660723 1635.73 1.00 1.336 1.1180 5380 No. Pr Temperature T Tr z for Separator Gas Gg for Flowing Fluid G 1 • 2.79 514 1.50 0.782 0.56 N/A 2. 2.74 514.6 1.50 0.788 3• 2.65 514.6 1.50 0.79 Critical Pressure 673.1 4. 2.57 513.5 1.50 0.793 Critical Temperature 343.2 5. 2.43 512.5 1.49 0.8 Form 10-421 Revised 1l~~ ~~~ p~~ ~ ~C:~}Q~INUED ON REVERSE SIDE ~i'~-~l'U ~ \ ~ U ~ ~~lbinitMr~plicate Pc ~ 264s pca 6999463.9 ~ p~ No. Pt Ptz Pcz-Pta Pw Pv~ Pcz-P~ Ps z a Ps Pf -Ps 1 • 1875 3516024.5 2. 1843 3396765.2 3. 1783 3180289.8 4. 1730 2gg2150.8 5. 1636 2675532.4 25. AOF (Mcfd) 8,702 n 0.999 Remarks: Excape well. Well not shut-in during test. SIWHP estimated at 2631 psig. I hereby certi that the regoing is true and correct to the best of my knowledge. Signed Z. I'~~~~-:~ ~~ ,~e ~,,~; Title ~ : ,~,~ ~~. Date ~~~ ~ ~°~~ DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= ~ dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia O Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 112004 Side 2 1.0E+07 BC 16RD Back Pressure Test -Wellhead Pressures 11 /04!07-11 /05/07 J N_ a 1.0E+06 U a 1.0E+05 Gas Rate (Mcfd) 1,000 10,000 BC-16RD Corrected API# ~ ~ Page 1 of 1 AAaunder, Thomas E (DQA) From: Maunder, Thomas E (DOA} Sent: Tuesday, December 04, 2007 8:07 AM To: 'Skiba, Kevin J.' Cc: Corwith, Bess Anne; 'Arthur C Saltmarsh' Subject: RE: BC-16RD Corrected API# Kevin, You are correct. Tom Maunder, PE AOGCC From: Skiba, Kevin J. [maflto:kskiba@MarathonOil.Com] Sent: Tuesday, December 04, 2007 6:17 AM To; Maunder, Thomas E (DOA) Cc; Corwith, Bess Anne Subject: BC-16RD Corrected API# Tom, As per our conversation on 1213/2007, the API# number provided on the Permit to Drift Sundry (50-133-20573-00- 00} for Beavee Creek 16RD is incorrect. Marathon is to use 50-133-20554-01-00 as the API# on future documentation relating to BC-16RD. Please forward your confirmation of this or correct any misinterpretation. Thank you for your cooperation, Kevin Skiba Production Technician Marathon Oii Company Office (907) 283-1371 Cell (907) 394-1332 Fax (907) 283-1350 12/4/2007 ~ f ~~ ~ ~ 9 ~ ~ °, r ~ ~~ t \\\ S 5 L, s ~ F 1 ''i 'a_ ' y1{ y { E y! ~tp '~y ~ ALASSA OIL, A11TD Gg,S C011TSERQA~`I011T COMMISSIOIQ Craig L. Rang Senior Completions Engineer Marathon Oil Company PO Box 1949 Kenai, AK 99611 SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Beaver Creek Field, Beluga Gas Pool, Beaver Creek 16RD Sundry Number: 307-326 Dear Mr. Rang: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this ~~day of October, 2007 Encl. ~o~ ~a5~ Sincerely, • ~~~~~~® Marathon Oil Company M Marathon Alaska Asset Team P.O. Box 1949 MARATHON Oil Company O C T ~ 3 2007 Kenai, AK 99611 FTelephone 807/283-1371 ~lasi~a Ail & Gas C©ns. COinrrlis~s~907/283-1350 Anchorage October 18, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Sundry Notice Field: Well: Dear Mr. Maunder: Beaver Creek Beaver Creek #16 Enclosed, please find an Application for Sundry Approval form 10-403 for the Beaver Creek #16 well with associated attachments. The well has been cased and cemented with a 3.5 inch Excape monobore production string to surface. Request for approval is being made to perforate, fracture stimulate the 7 Excape modules placed in the well, Coiled Tubing cleanout /nitrogen jetting and gas venting during the initial post fracture treatment flowback period. can be contacted at 907-283-1372 / (cell) 907-394-1824 or crang(a~marathonoil.com if you should require any further information. In addition, you may contact Kevin Skiba in our Kenai field office at 907-283-1371 or by email at kskiba(a~marathonoil.com. Sincerely, Craig Rang Completions Engineer Enclosures: 10-403 Sundry Notice cc: AOGCC Operations Procedure Houston Well File Well Schematic Kenai Well File CLR KJS ~ ~~~ ~ -®-z+~-a1 -~''- RECEIVED STA E OF ALASKA ~p~-d~ I~ ALAS OIL AND GAS CONSERVATION COMM SION ~~~ Q Q T ~ ~ 2007 ~` APPLICATION FOR SUNDRY APPROVALS ?~ Alaska 011 & Gas Cons. Commission 20 AAC 25.280 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ Wai P ~a0fl Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate Q Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool Q Re-enter Suspended Well ^ 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: ~ Development ^ Exploratory ^ 207-1250 3. Address: Stratigraphic ^ Service ^ 6. API Number: ~~~a~ PO Box 1949, Kenai Alaska, 99611-1949 50-133-Z95~~'8i1~00 a 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: ^ D Beaver Creek 16RD ' Spacing Exception Required? Yes No 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): -~ A - 028083 ' 179' (21' AGL) ' Beaver Creek /Beluga Pooi 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD {ft): Plugs (measured): Junk (measured): 9,421' 8,580' 9,402' 8,561' NA NA Casing Length Size MD TVD Burst Collapse Structural 103' 20" 103' 103' Conductor Surface 2,482' 13-3/8" 2,503' 2,288' 3,450 psi 1,950 psi Intermediate Production 5,188' 9-518" 5,188' 4,639' 5,750 psi 3,090 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA 3-112" Excape L-80 9,402' Packers and SSSV Type: Packers and SSSV MD (ft}: NA NA 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory ^ Development Q Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: d , ~ _ Z p p Oil ^ Gas ^ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Craig L. Rang Title Senoir Completions Engineer Signature ~ ~ Phone Date (907) 283-1372 10/18/2007 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~ - 3a Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ qq Other: `'t"' C3O ~ ~ r- G ~W C"C) yr ~ ~ D-~~IC~-S . ~~p Subsequent Form Required: (~~ ~~ ~ ~M l t v~C`~ ~\fc~~Oh aCT~~~ ~~~ J APPROVED BY Approved by: MMISSIONER THE COMMISSION Date: lQi ~~ Form 10-403 Revised 06/2006 ~R 1~1 N A`~ - ~J ~~~ ~ ~ 2OO7 Submit in Duplicate • BC-16RD Fracture Stimulation Desription Summary of Proposal Beaver Creek 16 ReDrill was drilled through a window cut in the 9 5/8" intermediate string and cased as a 3.5" Monobore Excape completion string back to the surface. There are seven (7) Excape perforating modules selectively positioned across the gas bearing sands. Each module will complete a different production interval with ten feet of perforations followed by individual fracture stimulations in each interval. Typically, Module 1 perforating will be actuated the day before fracture stimulations are scheduled. The Module 1 interval will then be stimulated the following morning followed by perforating Module 2 with its stimulation and continuing this sequence until all Modules have been perforated /stimulated. All Module perforations/fracture stimulation operations are typically concluded in one day, unless screenouts occur. After all treatments have been performed, coiled tubing will be utilized to cleanout the wellbore of module debris and frac proppant to PBTD. The well will then be jetted in with nitrogen via the coil tubing. Once the well is flowing on its' own, coil tubing will be pulled from the well and rigged down. Well testing operations will then commence and continue until an acceptable gas rate is acheived and produced frac water load volumes are at manageable levels. Once well is adequately cleaned up, well testing equipment will be rigged down and the well will be turned over to production. Request for Approval to Vent Gas i Due to the nature of such fracture stimulations, large amounts of water are injected, along with the fracture proppant that will have to be unloaded and cleaned up during the post fracture flowback/testing period. This unloading, or cleaning up period, requires the well to be vented to atmosphere until enough gas volume is achieved to flow the well into the high pressure sales gas system. The duration of this venting operation can last as little as a few hours up to a number of days based upon reservoir pressures, permeability, well performance, tubing size, and fracture placement success. For Marathon's gas well operations in the Beaver Creek Field, typical vent times are less than 48 hours. However, due to the uncertainty of exactly how long BC-16RD will be required to vent to atmosphere, this request is for a maximum vent period of 144 hours with a maximum vent volume during that period of 6 MMCF of methane gas. This volume is minimized due to the utilization of the Excape completion process which enables all intervals of interest to be fracture treated on the same day and unloaded together at one time, instead of multiple frac days with multiple flowback periods each requiring the venting of gas. If you have any questions regarding this gas venting request, please contact me at your earliest convenience. • Permit #: 207-1250 API #: 50-133-20573-00-00 Property Des: A - 028083 KB: 21' AGL (179' KB Elevation) X= 317,399.46 Y= 2,433,922.36 Lat: 60° 39' 29.546" N Long: 151° 01' 4.102" W Spud: 05:00 hrs 9/27/2007 TD Reached: 10/3/2007 Rig Released: 10:00 hrs 10/12/07 Top of Cement ?' MD above 9-5/8" window BC-16RD Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. w 9-5l8" Casing Window milled from 4,994' to 5,004' v~= (Drill Pipe Measurement) , ~. •f,. . ~• -~t~ ~« si'~ ~, t ~, ,~ a ~~`~ t,~ i . ,~~. ~ , ~~ S' ~* ' `;," 1 ~ ',`. 1 ~ ;; .~ .w ~ ' ,~~ it e ~ ~~., Conductor 20" K-55 133 ppf Tom Bottom MD 0' 103' rvD o' 103' Surface Casino 13-318" K-55 68 ppf Top Bottom MD 0' 2,500' TVD 0' 2,285' Cmt w/ 670 sks of Type 1, Intermediate Casinsa 9-518" L-80 40 ppf T~,o Bottom MD 0' 5,188' TVD 0' 4,639' Cmt original well w1209 Bbls 12.5 ppg of class G. Milled Sidetrack window 4,994' - 5,004' DPM Production Tubing 3-112" L-80 9.3 ppf EUE Top Bottom MD 0' 9,402' TVD 0' 8,561' TD - 9,421' (MD) / 8,580' (TVD) PBTD - 9,402' (MD) / 8,561' (TVD) Well Name 8 Number: BC-16RD Lease: Beaver Creek Field County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Perforations (MD): Perf (TVD): Angle @ KOP and Depth: Completion Fluid: Angle/Perfs: i Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company 3201 C. Street, Suite 800 Anchorage, AK 99503 SARAH PAL/N, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Beaver Creek Unit, Beluga Gas Pool, BC 16 RD Marathon Oil Company Permit No: 207-125 Surface Location: 1269' FNL, 1587' FWL, SEC. 34, T7N, R10W, S.M. Bottomhole Location: 3911' FNL, 3172' FWL, SEC. 34, T7N, R10W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to redrill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). DATED this ~~day of September, 2007 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA ~ '/a~'~~ ALA: _ _ ,OIL AND GAS CONSERVATION COMM. ~_ON PERMIT TO DRILL ~~.®~ J~_,~;~~4t ~n nnr. ~~ nn~ = =' ~~ ~+~~ ,~ 1 a. Type of Work: 1 b. Current Well Class: Exploratory ^ Development Oil ^ 1 c. Specify if well is proposed for: ' Drill ^ Redrill ~ Stratigraphic Test ^ Service ^ Development Gas ~ Coalbed Methane ^ Gas Hydrates ^ Re-entry ^ Multiple Zone Q Single Zone ^ Shale Gas ^ 2. Operator Name: 5. Bond: Blanket ~ Single Well ^ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 BC 16 RD 3. Address: 6. Proposed Depth: 12. Field/Pdol(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 9,321 TVD: 8,479 Beaver Creek Field 4a. Location of Well (Governmental Section): 7. Property Designation: Beluga Pool Surface: 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. A-028083 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 3,960' FNL, 2,683' FWL, Sec. 34, T7N, R10W, S.M. Se tember 18, 2007 Total Depth: 9. Acres in Property: 14. Distance to Nearest 3,911' FNL, 3,172' FWL, Sec. 34, T7N, R10W, S.M. 2,560 Property: 1,310 ft to A-028118 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 317,399.53 y - 2,433,922.51 Zone - 4 (Height above GL): (21' AGL) 179 feet Within Pool: 1,520 ft to BC 1A 16. Deviated wells: Kickoff depth: 5,000 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 26.5 degrees Downhole: 4,233 Surface: 2,330 18. Casing Program: Specifications To p -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 8 1/2" 3 1/2" 9.3 L-80 EUE - 8rd 9,300' 0' 0' 9,321' 8,479' 1,845 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): 6,422 5,872 N!A 6,315 5,765 N/A Casing Length Size Cement Volume MD TVD Conductor/Structural 103' 20" Driven 103'. 103' Surface 2,482' 13 3/8" 670 sacks 2,503' 2,288' Intermediate Production 6,381' 9 5!8" 805 sacks 6,402' 5,852' Liner Perforation Depth MD (ft): 5,676' - 5,686' (plugge) Perforation Depth TVD (ft): 5,127' - 5,137' (plugged) ( /"l' 20. Attachments: Filing Fee BOP Sketch ~ ~ Drilling Program 0 Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Plat [J Diverter Sketch Q Seabed Report ^ Drilling Fluid Program ^~ 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Willard J. Tank Titfe Advanced Senior Drilling Engineer Printed Name ,/~ Signature /' f~. ~ ~,~>~~' ~ ~ ~~ Phone 713-296-3273 Date September 4, 2007 Commission Use Only Permit to Drill API Number: Permit Ap rov See coveP letter for other q ? Number. ~fdT~~s~ ~5Q- ,3 .. d3 ~QQ Date: requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: Other: Samples req'd: Yes^ No~ Mud log req'd: Yes No[~ ' ~~- I~jC"vt- ~-Z ~;i v~~ ~.u,~;,L ''`~~v ~;;` HZS measures: Yes^ No Directio vy req'd: Yes No^ ~ `' ~o f o~~107 ~Nl~ P RO ED BY THE COMMISSION DATE: ~~ /~' 0 ,COMMISSIONER Form 10-401 Revised 12!2005 ~ v ~ ~Sebm' Du I' ate • ~ Page 1 of 2 Regg, James B (DOA) From: Tank, Will [wjtank@marathonoil.com] Sent: Monday, September 17, 2007 12:24 PM /~ To: Regg, James B (DOA) ~~j ~ "t C ~? l d~ Cc: Berga, Pete 2 ` Subject: RE: BC-16RD (PTD 207-125) Attachments: BC 16RD Drilling Prognosis.ZlP; BC 16RD WBD - After Sidetrack.pdf; BC 16 WBD -Before the Sidetrack.pdf Jim, I have reviewed your requested changes and/or questions and believe I have everything taken care of for you. I apologize for what appears to be a few typos caused by copylpaste. Here is a response to your items as listed. 1 } I have included the schematics with this e-mail. 2} Changed the field name to Beaver Creek. ~~ 3) Added the North slope pager number. :~ 4) Changed the referenced section in the regulations to reflect the 14 day testing requirement. ~' 5} Added a reference to the whipstock setting depth and window depths in the Drilling Program Summary. ~' 6) Moved the data to the proper columns in the table for the 3 112" casing information. ~" 7) We in fact will be doing a casing and BOPS test prior to milling a window on the 9 5/8" intermediate string, that's why f reference it. ~~'~ ~~oi-irch,.~~ C's~ 8) Changed the wording to reflect a sidetrack FIT versus a new well I_OTIFIT for various casings. ~ ~" »--4oi If i've missed anything please let me know, I am assuming that an electronic copy to you will suffice. If not; let me know and I will print and mail to you as well. Wia Tan k ~ic'~ ~~ mac.: ~ ~.~~5 Q~~c.1 ~ ~'"~~s~ ~~~;~~s , ~ ~ I 1 C, q .~- ~ . From: Regg, James B (DOA) [mailto:jim.regg@alaska.gov] Sent: Monday, September 17, 2007 12:02 PM To: Tank, Will Subject: FW: BC-16RD (PTD 207-125) Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 phone: 907-793-1236 fax: 907-276-7542 From: Regg, James B (DOA) Sent: Friday, September 14, 2007 5:10 PM To: 'wtank@marathonoil.com' Cc: Maunder, Thomas E (DOA) Subject: BC-16RD (PTD 207-125) Sorry we missed each other today. I have reviewed the permit application you submitted for the redrill of Beaver Creek 16 (PTD 205-116) and request the following: 1) Well schematic -existing and proposed (if available) 9/17/2007 Page 2 of 2 2) Page 1 of Drilling Program referen~Sterling Field instead of Beaver Creek F~ 3) Page 3, Section 2.1.2 (External Regulatory Contact) -suggest including AOGCC North Slope pager number - 907- 659-3607 -for emergency contacts 4) Page 3, Section 3 (Regulatory Compliance) - 20 AAC 25.035(e)(10)(F) is casing ram testing, not 24 hr notice prior to BOPE testing; not sure of the intent of this whole section; if it is to alert to BOPE test requirements, should reference entire section 25.035(e)(10) 5) Page 5, Section 4.6 (Drilling Program Summary) -whipstock setting depth and window should be referenced (5000 ft MD?) 6) Page 9, Section 4.7 (Casing Program Summary) -values in columns Grade, ID and Drift for the 3-1/2" casing mixed up (Grade should be L80; ID should be 2.992; Drift should be 2.867) 7) Page 11, Section4.11 (BOPE) -reference to Intermediate casing (should this be surface?) I am assuming you are including this because of casing and BOPE tests prior to cutting window in 9-5/8 7) Page 17, Section 4.21 (Formation Integrity Test Procedure) -procedure references a LOT for the Surface casing; that is already behind pipe; your well does not have Intermediate casing per the PTD; will there be a LOT done after exiting out the window cut in 9-5/8 inch production casing? AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 phone: 907-793-1236 fax: 907-276-7542 9/17/2007 • M Marathon MARATHON Oil Company Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 i~~t,:~~~ V ~~ September 4, 2007 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application - Re-Drill BC 16 Permit No: 205-116 Field: Beaver Creek Field Well: BC 16RD Dear Mr. Norman SEP 0 5 2007 Alaska Oil & Gas Cons. Commission Anchorage Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to sidetrack out of the existing wellbore at BC 16 and drill a Beluga pool well in the Beaver Creek Field, utilizing an EXCAPE completion. No completion is desired in the Sterling pool. Please note that the surface coordinates for this well and the directional plan are now utilizing North American Datum 1983 (NAD 83) as required in the latest BLM 43 CFR Part 3160, Onshore Order No. 1, dated March 7, 2007. On the PERMIT TO DRILL we have included surface coordinates in NAD 27 in order to allow the commission to put the well in their database. All other attachments reference NAD 83. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtank@marathonoil.com. Sincerely, Willard J. Tank Advanced Senior Drilling Engineer Enclosures STATE OF ALASKA /a~'~~ ALA~OIL AND GAS CONSERVATION COMMON ~~CEIVED `~ FP 0 5 2007 PERMIT TO DRILL k~'~Ir~ J.~,~~+~la~laska Oil & Gas Cons Co+nmissioR 20 AAC 25.005 Anrh~~~.... 1 a. Type of Work: Drill ^ Redrill Q Re-entry ^ 1 b. Current Well Class: Exploratory ^ Development Oil ^ Stratigraphic Test ^ Service ^ Development Gas Q Multiple Zone ~ Single Zone ^ 1 c. Specify if well is proposed for: Coalbed Methane ^ Gas Hydrates ^ Shale Gas ^ 2. Operator Name: Marathon Oil Company 5. Bond: Blanket Q Single We11 ^ Bond No. 5194234 11. Well Name and Number: BC 16 RD 3. Address: 3201 C. Street, Suite 800, Anchorage, AK 99503 6. Proposed Depth: MD: 9,321 TVD: 8,479 12. Field/Pool(s): Beaver Creek Field 4a. Location of Well (Governmental Section): Surface: 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. 7. Property Designation: A-028083 Beluga Pool Top of Productive Horizon: 3,960' FNL, 2,683' FWL, Sec. 34, T7N, R10W, S.M. 8. Land Use Permit: 13. Approximate Spud Date: Se tember 18, 2007 Total Depth: 3,911' FNL, 3,172' FWL, Sec. 34, T7N, R10W, S.M. 9. Acres in Property: 2,560 14. Distance to Nearest Property: 1,310 ft to A-028118 4b. Location of Well (State Base Plane Coordinates): NAD 27 Surface: x - 317,399.53 y - 2,433,922.51 Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 179 feet 15. Distance to Nearest Well Within Pool: 1,520 ft to BC 1A 16. Deviated wells: Kickoff depth: 5,000 feet Maximum Hole Angle: 26.5 degrees 17. Maximum Anticipated Pressures in prig (see 20 AAC 25.035) Downhole: 4,233 Surface: 2,330 18. Casing Program: Specifications Top -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 8 1/2" 3 1/2" 9.3 L-80 EUE - 8rd 9,300' 0' 0' 9,321' 8,479' 1,845 sacks ~' 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) Total Depth MD (ft): 6,422 Total Depth TVD (ft): 5,872 Plugs (measured): N/A Effect. Depth MD (ft): 6,315 Effect. Depth TVD (ft): 5,765 Junk (measured): N/A Casing Length Size Cement Volume MD ND Conductor/Structural 103' 20" Driven 103' 103' Surface 2,482' 13 3/8" 670 sacks 2,503' 2,288' Intermediate Production 6,381' 9 5/8" 805 sacks 6,402' 5,852' Liner Perforation Depth MD (ft): 5,676' - 5,686' (plugge) Perforation Depth TVD (ft): 5,127' - 5,137' (plugged) ~' 20. Attachments: Filing Fee BOP Sketch ~ Drilling Program Q Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Plat [~ Diverter Sketch ^~ Seabed Report ^ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature Phone 713-296-3273 Date September 4, 2007 Commission Use Only Permit to Drill Number: p?Q~~p~jr~ API Number: 50- ,3 _ QS~3000d Permit Ap rov Date: See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce Coalbed methane, gas hydrates, or gas contained in shales: Other: Samples req'd: Yes^ No Mud log req'd: Yes No[~ ICS- ~~h~ ~-_ ~+n~,i,,~yL ~,~ ~~ HZS measures: Yes^ No Directional svy req'd: Yes No^ PPROVED BY THE COMMISSION DATE: ~~/~~ D~ ,COMMISSIONER Form 10-401 Revised 12/2005 ~' ~ ti is~ D~~~ ~t1 ., ~ • BG 16RD Drilling Program Marathon Oil Company Alaska MARATHON OIL COMPANY DRILLING PROGRAM Beaver Creek Field BC 16RD Originator: Will Tank September 17, 2007 Date Reviewed by: Pete Berga Date Brian Roy Date 9/17/2007 Page 1 of 17 • • BC 16RD Drilling Program Marathon Oil Company Alaska TABLE OF CONTENTS 1. Emergency Response Information ..................................................... .............................................................4 1.1 Directions to Location ......................................................................... .............................................................4 1.2 Rig Contact Numbers ......................................................................... .............................................................4 1.3 Marathon Emergency Response Contacts ......................................... .............................................................4 1.4 Outside Emergency Response ........................................................... .............................................................4 1.5 Marathon Contact List ......................................................................... .............................................................5 2. Regulatory Agency Contacts .............................................................. .............................................................5 2.1.1. Internal Regulatory Contact ................................................................ .............................................................5 2.1.2. External Regulatory Contact ............................................................... .............................................................5 3. Regulatory Compliance ...................................................................... .............................................................5 4. Drilling Program Summary .................................................................. .............................................................6 4.1 General Well Data .............................................................................. .............................................................6 4.2 Working Interest Owners Information ................................................. .............................................................6 4.3 Geologic Program Summary .............................................................. .............................................................6 4.4 Summary of Potential Drilling Hazards ............................................... .............................................................7 4.5 Formation Evaluation Summary ......................................................... .............................................................7 4.6 Drilling Program Summary .................................................................. .............................................................8 4.7 Casing Program Summary ................................................................. .............................................................9 4.8 Casing Design ..................................................................................... .............................................................9 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) ...........................................................10 4.10 Casing Test Pressure Calculations .................................................... ...........................................................11 4.11 Blowout Prevention Equipment, Testing and General Procedures .... ...........................................................11 4.11.1. Function Testing ................................................................................. ...........................................................11 4.11.2. Pressure Testing ................................................................................. ...........................................................12 4.12 Wellhead Equipment Summary ......................................................... ...........................................................12 4.13 Directional Program Summary ............................................................ ...........................................................12 4.14 Directional Surveying Summary ......................................................... ...........................................................13 4.15 Drilling Fluid Program Summary ......................................................... ...........................................................14 4.16 Drilling Fluid Specifications ................................................................. ...........................................................14 4.17 Solids Control Equipment ................................................................... ...........................................................15 4.18 Cement Program Summary ................................................................ ...........................................................15 4.19 Bit Summary ....................................................................................... ...........................................................16 4.20 Hydraulics Summary ........................................................................... ...........................................................16 4.21 Formation Integrity Test Procedure .................................................... ...........................................................17 9!17!2007 Page 2 of 17 • ~ BC 16RD Drilling Program Marathon Oil Company Alaska Attachments Group Attachment .Attached Commercial Information AFE Da s/Cost vs. De th Curves X Pro'ect Ob'ectives and Scorecard RSO Codin Information X Re uisitions Vendor List Bonus Pro ram Drillin Contract Re ulato / HES Information Emer enc Evacuation Plan X H2S Contin enc Plan n/a Re ulato Permits X Re ulato Rules and Re ulations Risk Anal sis Miscellaneous Pro rams Vendors Bit Pro osal X Cement Pro osal X Directional Plan X Fluids Pro ram X Wellhead E ui ment - Descri tion/Drawin s Drill Strin and BHA Summa Ri Mobilization/Moorin Procedure n/a Geolo ical Information Location Ma w/ offsets X Offset Data Pro osed Formation Pore Pressure, Mud Wt & Fracture Gradient X Tem erature Curves Geolo is Structure Ma s Geolo is Cross Section Bath met Ma n/a Anal sis Riser Anal sis n/a Station Kee in Anal sis -Moorin /DP n/a Stress Check Casin Desi n File X Maximum Allowable Over ull Miscellaneous Information Wellbore Dia ram n/a Ri Elevations X Well Location Dia ram X BOP Schematic X BOP Well Control Brid in Document Detailed Casin S ecifications X Detailed Drill Pi e S ecifications 9/17/2007 Page 3 of 17 BC 16RD Marathon Oil Company Drilling Program Alaska 1. Emergencv Response {nformation 1.1 Directions to Location Method Directions Air Latitude - 60°39'27.414"N Longitude -151 °01'11.992"W (PtAD 83} From the Kenai airport, go 0.4 mile South on North Willow Street. Turn East on Airport Way, go 0.5 miles. Tum East on Kenai Ground Spur Highway and go less than 0.1 miles. Turn East on Marathon Road and go 10 miles. In the Beaver Creek Field stay to the left, running past the field office. Go 1.4 miles to Beaver Creek Pad 3. 1.2 Rig Contact Numbers -- ---- Contact ~ .Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907-283-1314 907-394-1321 Marathon Supervisor 907-283-1312 907-394-1317 1.3 Marathon Emergencv Response Contacts Individual Portion Main Phone Alternative Kenai Gas Field Emergency Number 907-283-6465 CERT 24 hrs Notification 1-800-MOC-CERT CERT Crisis Center Houston 713-296-4230 713-296-4237 1.4 Outside Emergencv Response Location Contact ~ Phone Fire Kenai /Soldotna, Alaska 907-262-4792 Ambulance Hospital Kenai /Soldotna, Alaska Central Peninsula Hospital 907-262-4404 Police Kenai /Soldotna, Alaska Kenai Police Soldotna Police State Police 907-283-7879 907-262-4455 907-262-4453 Coast Guard 800-478-5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil /Toxic Chemical Spills 800-424-8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 9/17/2007 Page 4 of 17 • • BC 16RD Drilling Program 1.5 Marathon Contact List Marathon Oil Company Alaska Contact Title Office Mobile Facsimile Horne Will Tank Drilling Engineer 713-296-3273 713-203-8398 713-499-6737 832-934-2617 Pete Berga Drilling Superintendent 907-565-3032 907-529-0551 907-565-3076 907-346-3763 Bryan Roy Drilling Manager 713-296-3256 832-444-4772 713-499-6707 281-246-4686 Scott Szalkowski Geologist 713-296-3390 713-301-9834 Moksh Dani Reservoir Engineer 713-296-3140 832-692-4700 Craig Rang Completion Engineer 907-283-1372 907-394-1824 Ken Walsh Production Engineer 907-283-1311 907-394-3060 907-283-3050 John Nicholson Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Dan Byrd Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Mike Feketi Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Rowland Lawson Drilling Supervisor 907-283-1312 907-394-0953 907-283-1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title ~ Office Phone Cell Phone Home Phone Facsimile Chick Underwood Regulatory Compliance j 713-296-3254 979-830-7927 I 979-836-9390 713-499-6748 2.1.2. External Regulator y Contact Gantact ~ Title .Office Phone Facsimile 24 hr Emer -enc Fa cr ~ AOGCC 907-793-1236 j AC~GCC North Slope Pager - 907-659-3607 BLM 907-267-1442 3. Regulatory Compliance -- P.eg~ilation 20 AAC 25.035 a 10 A 20 AAC 25.035 a 10 H Comments BOP testing interval requirement is now 14 days. Requirement fora 24 hour notice to AOGCC prior to BOP test. Requirement ~~ 9/17/2007 Page 5 of 17 • • BC 16RD Drilling Program Marathon Oil Company Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name IBC 16RD I Lease /License __- Surface Location 1,269' FNL, 1,587 FWL, Sec. 34, T7N, R10W, S.M. _ ~~^JBS Code DD.07.15539.CAP.DRL Slot/Pad Beaver Creek Pad 3 - - Field Beaver Creek Field _ _ _-------t ~ Spud Date i 09/18/07 (est.) I KE labove'MSL) ~I 179' County/Province Kenai Peninsula API No. GL (above MSL) 158' State /Country Alaska Permit No Perm_ Datum KB ;Total MD 9,321' Well Class I Development ~, Water Depth N/A Totaf ND ~ 8,479' ~ Rig Contractor Glacier Drilling Water Protection Depth ~, P.ig Name 'Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Com an Workin Interest Address Phone Facsimile: ~ Marathon 100% P.O. Box 196168 907-561-5311 _ 907-565-3076 1 Anchorage, AK 99519-6168 4.3 Geologic Program Summary Surface Location Coordinates-t~~~ From LeaselBlock Lines 1,269' FNL, 1,587 FWL, Sec. 34, T7N, R10W, S.M. Latitude 60° 39' 27.414" N 'Longitude 151° 01' 11.992" W uTM North (Y) 2,433,674.563' UTM East (x) 1,457,426.777 Tolerance Formation 1 h-1D RK6 I ND - R#<B I (ft) (ft) ! Pore Pore... Pressure ~ 'Pressure (psi): (ppg) ~ i Possible Lithology _ Fluid Content _ Sterling 63 (Not a Target) _ 5,683 _ 5,084 7.1 - 7.7 Sandstone Gas Lower Beluga LB-16 (Primary Target) 7,836 7,079 3.0 - 9.6 Sandstone Gas Lower Beluga LB-23 (Primary Target) 8,437 7,639 3.0 - 9.6 Sandstone Gas Lower Beluga LB-28 (Primary Target) 8,855 8,034 3.0 - 9.6 Sandstone Gas 9/17/2007 Page 6 of 17 ,1 • • BC 16RD Drilling Program Marathon Oil Company Alaska - - -- Horizontal Depth (KB} ' Displacement (tt} MD TVD +N/-S +E/-W Tolerance Target (ft) (ft} Location (Y) (X) i (ft) Lower Beluga 7,836 7,079 3,960' FNL, 2,683' FWL, Sec. 34, T7N, R10W, S.M. -2,691 1,096 Circle 100' radius LB-16 Lower Beluga 8,437 7,639 3,938' FNL, 2,899' FWL, Sec. 34, T7N, R10W, S.M. -2,669 1,312 Circle 100' radius LB-23 Lower Beluga 8,855 8,034 3,925' FNL, 3,035' FWL, Sec. 34, T7N, R10W, S.M. -2,656 1,448 Circle 100' radius LB 28 TD 9,321 8,479 3,911' FNL, 3,172' FWL, Sec. 34, T7N, R10W, S.M. -2,642 1,585 4.4 Summary of Potential Drilling Hazards T _ _ ~ _ _ - Depth KB Hazard Event (Np} Discussion Precautions Lost Circulation in Sterling and Production Control losses by using sufficiently sized LCM, Take care not to surge the hole during Beluga sands Hole calcium carbonate types. tripping operations. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. Gas sands will be encountered from +/- 5,683' MD (5,084' TVD) to total depth of the well. These sands will run from highly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Beluga sands. Above normal pore pressure with associated gas entry is a potential hazard in some of the Beluga sands. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Best Practices: 1 Comments: 4.5 Formation Evaluation Summary Interval ~ LV,1D Electric Logs _ Mud Logs Surface /Intermediate None None None (Existing) Sidetrack Production None Reeves Quad Combo & MFT Pressures. Basic with GCA, shale density, temperature in and 5,000' - 9,321' MD Pull GR-Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 9/17/2007 Page 7 of 17 ~ • BC 16RD Marathon Oil Company Drilling Program Alaska 4.6 Drilling Program Summary WELLBORE PREPARTION: (See abandonment procedure for details) 1. Glacier 1 will already be rigged up over the well. The 3 1/2" tubing will have been pulled and the perforations will have been cement squeezed under a retainer. `f 2. Test BOP to 250/2,500 psi. Set wear bushing. 3. RU wireline, PU 9 5/8" bridge plug. RIH with bridge plug and GR-CCL. Correlate GR-CCL with existing bond log. Set bridge plug at 5,020' MD. 4. MU and RIH with bottom trip whipstock. RU and run MWD to set whipstock on top of bridge plug, set for ~ 45° left of highside tool face orientation. Cut window (approximately 5,000' - 5,017' MD) and ensure that all mills are worked thru window. CBU and perform 1=1T at KOP outside casing window to - 15.0 ppg Best Practices: 1 Comments: SIDETRACK DRILLING: Production: Drill 8 1/2" hole to +/- 9,321' set 3-1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. 2. Drill 8 1/2" hole to an anticipated TD of 9,321' MD (8,479' TVD) as per the directional program, short tripping as required. 3. At TD circulate hole clean. Make wiper trip. TOOH. 4. RU Precision. Run open hole logs as per plan. RD logging company. 5. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH back through the 9 5/8" window and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down -BHA and drill pipe. Pull wear bushing. 6. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 7. Cement 3 1/2" casing while reciprocating Bump plug with 500 psi over displacement pressure. WOC. 8. PU 3 1/2" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 9. LD BOP. Set 3 1/2" packoff. NU 11" 10M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 10. Rig down and move out drilling rig. Note: Drill the production hole section with 5" drillpipe. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. Best Practices: 1 Drill the production hole section with 5" drillpipe to maximize hole cleaning hydraulics. 2 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 3 Put lubricant in prior to drill out of intermediate window. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: 9/17/2007 Page 8 of 17 ~ • BC 16RD Drilling Program COMPLETION: Marathon Oil Company Alaska Completion: With the perforation modules in place, the completion will be done without a rig. The `' completion will consist of activating perforating guns via surface hydraulic pressure and fracture stimulating each zone. A wireline or coil run will be used to remove any debris from the 3 1/2" completion after frac jobs are performed. Best Practices: 1 Comments: 4.7 Casing Program Summary ~ ~ MD (ft) _ ~ __ ~ __ ~ _ ~ Connection ~ ~_ API Ratings asing Size ~_ (in) ~ { i _ Top ~ Bottom ~ Weight tD ~ (Ibs/ft) ~ .Grade (in) rill ~ (in) __ O. D. Type ', tin) akeup Torque i (ft-Ibs) . ~~ Hole ~ ,,, ~ ,~. ~ ., Size ~ ~ ? o ~ ~ Y f (in) ~ ~ ~ 20 0 103 130.1 K-55 _ _ __ _ 13 3/8 0 2,503 68 K-55 12.415 12.259 BTC 14.375 N/A * 16 3,450 1,950 1,300 9 5/8 0 6,402 40 L-80 8.835 8.750** BTC 10.625 WA * 12 1/4 5,750 3,090 979 31/2 0 9,321 9.3 L-80 2.992 2.867 8rd 4.500 3,200 8112 10,160 10,530 207 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 * - Make up buttress connection to proper mark, not to a torque value. Comments: *" Note that the 9 5/8", 40.0#, L-80 casing is a special drift 8.750". 4.8 Casing Design ~~ CaSlflg SIIoP ~~ L. ~ ~ Safety Factors ~ ~ getting Maximum T ~ Casing f Depth Mud Wt l Frac. Form Surface ~ ~ e _ ~ ~ Size ( Weight i TVD When Set Grad Press Pressure ~ ~ ` (in) ~ _ (Ib/ft) Grade (ft) pb/gal) (Iblgal) I (Iblgal) (psi) m ~ ~ v ~ ~ ~" ~~ 13 3/8 68 K-55 2,288 Existing Casing String 9 5/8 40 L-80 5,852 Existing Casing - N/A 2,330 Existing Casing - N/A 31/2 9.3 L-80 8,479 9.9 15.0 9.6 2,330 1.12 2.42 1.30 Comments: Maximum overpull on the full string of 3 1/2" production casing needs to be limited to 90,000 Ibf to avoid parting the pipe. 9/17/2007 Page 9 of 17 • ~ BC 16RD Marathon Oil Company Drilling Program Alaska 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) i Selling Casing Depth :Size- ND MAWP " MASP " Mud/Gas (inJ (ftl (psi) ~ (psi) ~ _Percenta,ge 13 3/8 2,288 Not applicable, 13 3/8" production casing is already in place. 9 5/8 5,852 3,979 2,330 30/70 3 1 /2 8,279 7,112 2,330 30/70 * MAWP =Maximum allowable working pressure ** MASP =Maximum anticipated surface pressure The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure - 0.1 psi/ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure - 30% Mud Column - 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbon: being completely evacuated with only a gas gradient remaining. Intermediate casing: 9 5/8" (Casing window at 5.000' MD. 4.458' TVD) MASPr~ _ ((Fracture gradient at shoe) x .052 x TVDsh°e) -Hydrostatic pressure of gas column at the shoe. MASPr~~ _ (15.0 ppg x .052 x 4,458') - (0.1 psi/ft x 4,458') MASPr~c = 3,477 psi - 446 psi MASPf~c = 3,031 psi. MASPbhP = BHPoP~ h°ie m -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbhP = (9.60 ppg x .052 x 8,479') - (0.3 x 9.9 ppg x .052 x 8,479') - (0.7 x 0.1 psi/ft x 8,479') MASPbhP = 4,233 psi - 1,309 psi - 594 psi MASPbhP = 2,330 psi MASP =MASPbhP = 2,330 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) - (9.9 - 9.7) x .052 x 4,458' MAWP = 4,025 psi - 46 psi = 3,979 psi Production casing: 3 1/2" (9.321' MD. 8.479' TVD) MASPfrac =((Fracture gradient at shoe) x .052 x TVDshoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (15 ppg x .052 x 8,479') - (0.1 psi/ft x 8,479') MASPfr~c = 6,614 psi - 848 psi MASPfra~ = 5,766 psi. MASPbhP =BHP°Pen hae m -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbhP = (9.60 ppg x .052 x 8,479') - (0.3 x 9.9 ppg x .052 x 8,479') - (0.7 x 0.1 psi/ft x 8,479') MASPbhP = 4,233 psi - 1,309 psi - 594 psi MASPbhP = 2,330 psi MASP =MASPbhP = 2,330 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) - (9.9 - 9.9) x .052 x 8,479' MAWP = 7,112 psi - 0 psi = 7,112 psi 9/17/2007 Page 10 of 17 ~ • BC 16RD Marathon Oil Company Drilling Program Alaska Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM ~~ ', Casin g Test Test I Casing I Test Fluid Pressure ' Size 'i MA1,NP MASP Press BOPS Density Low/High Casing _- iin) ', (psi) (psi) _ - (Psi) (Iblgal) Size & Rating - (psi) - (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Intermediate 9 5/8 3,979 2,330 1,500 9.9 250/2,500 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 31/2 7,112 2,330 1,500 9.9 250/2,500 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1 /8" 5M outlets Blowout Preventers s The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. The choke manifold will be rated 3-1 /8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will ~ contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 9/17/2007 Page 11 of 17 • BC 16RD Drilling Program Marathon Oil Company Alaska 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. , Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary ~ Component Description Casing Hanger Type 13 518" x 9 5/8" Fluted Casing Head 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 Mandrel Tubing Head 13-5/8" 3M Studded Bottom X 13-5/8" 5M Flg Top, W/ 2, 2-1116" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual U,AA,PSLI,PR1 Slip Adapter Flange 13-5/8" 5M X 3-1/8" 5M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summary ec. No. - escription i fv1D (ft) VD (ft) _.~. Build Rate (°/100') - Tum Rate (°/100'j ogleg ('/100') ..~....... Inclination (deg) ~' ;;zirnuth (deg) Coortlinates ~~ -i +N!-5 +E/-~/y V5 lft) (ftj (ftj 1 Tie On / KOP 5,000.00 4,458.39 0 0 0 13.886 165.867 -1,977.19 427.54 1,926.79 2 V`Jhi~siock Section 12.00 0.02 12.00 3 End of Build 5,020.00 4,477.70 12.00 0.02 12.00 16.285 165.870 -1,982.23 428.82 1,931.79 4 Suitd uo Section 2.85 -2.19 2.95 5 End of Build 5,378.69 4,811.30 2.85 -2.19 2.95 26.500 158.000 -2,105.55 471.19 2,059.81 6 ?" Hold Section 0 0 0 26.500 158.000 7 End of Hold 5,893.20 5,271.76 0 0 0 26.500 158.000 -2,318.41 557.19 2,287.18 8 9'` (.1r'op Section -0.22 -3.80 1.49 9 End of Drop 7,836.15 7,079.00 -0.22 -3.80 1.49 22.207 84.214 -2,691.22 1,096.33 2,879.29 1-0 ~"' i-lcid Section 0 0 0 22.207 84.214 11 End of Hold 7,900.00 7,138.12 0 0 0 22.207 84.214 -2,688.79 1,120.34 2,889.17 12 2" tJrop, Section -0.43 0 0.43 ~ 13 End of Drop 9,111.50 8,279.00 -0.43 0 0.43 17.000 84.214 -2,647.83 1,524.60 3,055.39 14 3"` Naic,' Serticr 0 0 0 17.000 84.214 15 TD 9,320.63 8,479.00 0 0 0 17.000 84.214 -2,641.66 1,585.43 3,080.90 9/17/2007 Page 12 of 17 • • BC 16RD Drilling Program Marathon Oil Company Alaska o _.__....._ '! 1000 __ _ '......_. ._ 1000 ~-- 1 _. ! - 2000 ......_ ~ 0 _ . :. ___... ..._ . 4 c ~ t ._ \ ! ' ' c ' ;. i _. p 3000 , _....... ~~. %, ~ ~ ~~ ~ ' - N ~~ i ~ . -: `. n 000 ~ ~~......... _9518". _..f ' x-1000 ..... -..._ .____ .;_ .__.__ -' '. a~ s + ,. v 5000 •- .: - -- --- __ .... ! Z '. '. - : j ~ L 2000 .. 1 _ :- ~ BC 16RD (LB-28j 6000 H ~ ~' o ~ BC 16RD L. Beluga (LB-16) ~ 7000 BC 16RD (LB 23) ',y _.. !~ -3000 _,:._ ,_._;__..~.. __~ - __ - i BC 16RD L. Beluga (LB-16) - ~ ~ ~ - 8000 BC 16RD (LB 28) _._. ~I. ~ BC16RD(LB-23) ' : 312 .. .... _. ) ~ ) -0000 .__ .._':..... :....__.._ '...._.. -2000 -1000 0 1000 2000 3000 4000 5000 -1000 -0 1000 2000 3000 Vertical Section at 150.07° (2500 Win) West(-)/East(+) (1500 ft/in) Comments: Vertical section calculated from a reference azimuth of 150.07° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Death (MD) BC 9 848.88 5,000 BC 13 1,390.96 5,000 Except for exiting the existing wellbore, BC 16, no serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Survevinp Summary Interval MD (ft) _ 1 MVVD Survey Magnetic Muhlshot 1I GyroMultishot ~ , Other Survey ~ Remarks Tool ~ - _ Use existing MWD Surface / 0 - 5,000' surveys, set whipstock with Intermediate MWD tool. Production 5,000' - 9,321' X Best Practices: 1 Comments: i 9/17/2007 Page 13 of 17 C BC 16RD Drilling Program • Marathon Oil Company Alaska 4.15 Drilling Fluid Prog ram Summary Interval-TVD ~', Minimuminventory ~ -- From To Density I GFI I (ft) (ft) _ - (Iblgal} -- ( Fluid Description - - Additives ~ Vis~o,.ifier Barite ~ _. -._ _ 0 4,458 9.1 Milling Fluid (Flo-Pro) Flo-Vis, Caustic, Conqor 404, Sodium Meta Bisulfate, KCI Flo-Vis, PolyPac Supreme UL, KCI, SafeCarb, 4,458 8,479 9.1 - 9.9 6% Flo-Pro NT w/ Safecarb Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Lubetex, Klagard Best Practices: 1 Comments: 4.16 Drilling Fluid Specifications _-- Interval - TVD LSR.V T ~ - - - Drill From (ft) To (ft) Density pb/gal) Vis (seGgt) 1 min ~ (Ib./100ft~) PV (cP) YP ~ Fluid Loss (Ib/100 ftz) (cc) pH Sofids (%) 0 4,458 9.1 30,000 +/- 12 - 18 < 7 +/- 9.5 N/A 4,458 8,479 9.1 - 9.9 40,000 +/- 12 - 18 < 6 +/- 9.5 < 5 Best Practices: 1 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 31/2" production casing will be treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control leakoff. 9/17/2007 Page 14 of 17 • • BC 16RD grilling Program Marathon Oil Company Alaska 4.17 Solids Control Equipment , - ~~ m iv C ~ ~ IIl T (] ~ ; C ~ i L u ~ n a~ ~ ~~ ' ~ ~ ~ nlenrai ~ r (~ ai ~ a~'i ~ ~ ~ . ~ ~ ~ ~ ... ~ U ~.. ~ ~ U o , , ~ N .Onlment5 0 - 9,321' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Item Equipment Specifications i (quantity, design type, brand, model, flew. capacity, etch-, Shaker _ __ 2 -Swaco Mongoose PT Desander N/A Desilter 1 -Derrick Model 0522 fvlud cleaner N/A Centrifuge 2 - MI/Swaco units °Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 4.18 Cement Program Summary Depth Gauge Top of Cement Gauge Ann Vof i Slury Casing ~~ Hole ~ ~ Ann Vol With OH Density Open Hole ~ Thickening c:» ~ MD T'VD din) eft) eft) Size din) iv1G TVp lft) (g) ToTOC + Excess LeadlTa~i ~~3) I (ft') (pPg) Excess Tame (%) (hrs) 31/2 9,321 8,479 8 112 4,500 3,986 1,593 2,15<~ 1 , 3 40 N/A, ~ ~ Mix Water Compressive Casing. Slurry TQ'~ Strength Size Density ~ Clty Yield Vol MD qty ~ UVL FW f Ps!>_ (in) Slurry Cement Description Qb/gal) (sx) {ft3lsx) (ft') (ft) (gallsx) Type ;cc) (%) S hr ~ 24 hr 31/2 Tail Class "G° 15.8 1,845 1.17 2,159 4,500 4.97 Fresh 24 0 226 2,632 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: See cement prognosis for details and spacer specifications. 9/17/2007 Page 15 of 17 • • BC 16RD Drilling Program Marathon Oil Company Alaska 4.19 Bit Summary Inteiv;~1 - MD From I To r i (ft) ~ ~~) 5,000 ~ 9,321 TYPe Size (ini Manufacturer 81/2 ~ Christensen Modef No. ~ IADC HCM 605 ~ M323 Recommended _~ WOB I skips) ~ RPM Up to 25 ~ Motor Estimated --- - ~ Expected Rotating Minimum ROP Hours (fbhr) Best Practices: 1 Comments: It is anticipated that we will encounter a conglomerate section from 7,131' - 7,836' MD. Previous drilling operations in this section only yielded about 5q0' of conglomerate drilled until the bit was ringed out. Recent drilling at the Sterling unit drilled over 2,Ofl(t' of conglomerate without bit failure. See bit prognosis for additional information. Back up bits for the 8'/2' hole section will consist of mill tooth and TCI tricone bits. 4.20 Hydraulics Summary ty ake i ', Liner ID Strohe Mode{ (in) (in) ~ Max Press,@ Displacement @ 90°/a~WP 953'a Vol. eff (psi) (gal/stroke) ---. ~ Max Rate 95% Vol. eff Hole Sections Used (spmlypmi On 5 8 2,597 2.04 125 / 255 Surtace 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production epth-MD (ft) Hole Size (in) Pump Rate (gpm) _- Standpipe Pressure (psi) -Est. Openhole Min AV (fpm} W (ppg) i ~5F 2t ECD i Size i bit I (ppg) ~ j32'~s) ii t~si~ ~ _ _Remarks (DnllstnngcontiguraGon) -_ --~ 0 - 5,000 8 1/2 Abandonment Section -Pump rates will vary based on activity. 5,000 - 9,321 8 1/2 500 259 9.1 5 -15's Try to maintain 500 gpm or greater. Best Practices: 1 Comments: See separate hydraulics calculations. Annular velocity in the 8 1/2" hole was calculated using 5" drillpipe. 9/17/2007 Page 16 of 17 • BC 16RD Drilling Program C] Marathon Oil Company Alaska 4.21 Formation Integrity Test Procedure The Intermediate casing window will be tested to an FIT of 15 ppg. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing window and condition the mud to the same properties in and out. 2. Pull drill string into the casing and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Best Practices: 1 Comments: 9/17/2007 Page 17 of 17 • • BC-16 ~~~ Sterling Aug-07 60° 39' 27.414" N Lat 151 ° 01' 11.992" W Lona. ~,,- L: 158' B: 179' t21' AGLI PUD: 10:30hrs 0911 812005 D: 0912912005 PI # 50-133-20554-00 WBS # DD.04.10978. a Released: 10:00 hrs 1 010 412 0 0 5 i ~_ 20", cQ 103' Chemical Injection Mandrel 1203' i. rmit # 205-116 ocerty: A-028083 2503' Cmt w/ 670 sxs type 1 3.5" EUE BrdTubing t ~ (~ Packer assembly r ~ 5411' MD -~ Xn ~ 5483' WLEG ~ 5516' Sterling Perfon5ons MD TVD B2 B3 B3 5676 - 5666 5127 - 5137 PBTD ~ 6315 9-518", 40ppf, L-80 6402' F- Cmt w/ 209 bbls 12.5 lead 109 bbls 13.5 tail, 90 bbls cement rtns G K S T Ri A Pe Pr Well Name & Number BC-16 Lease Beaver Creek County or Parish: Kenai State/Prov. Alaska Country: USA Pertorations: (MD (TVD) Angle/Perts Angle @KOP and Depth 1.8 ~ 500' KOP TVD 500' BHP: BHT: Completion Fluid: 6% KCI FWHP. FBHP: FWHT: FBHT: Other: Date Completed: 10/03/05 RKB: 21' Prepared By: M A Mullin Last Revision Date: 08/23/07 WJT • • 60° 39' 27.414" N Lat 151 ° 01' 11.992" W Lona. GL: 158' KB: 179' t21' AGLI BC-16RD Proposed Completion Sep-07 2503' Cmt w/ 670 sxs type 1 Window' 5,000' - 5,017' -~ Bridgeplug 5020' MD ~ Cement Retainer 5390' MD ~ Packer assembly 5411' MD ~ Xn ~ 5483' -~ WLEG ~ 5518' Squeezed Sterling Perforations MD TVD B3 5676 - 5686 5127 - 5137 9-5/8", 40ppf, L-80 6402' Cmt w/ 209 bbls 12.51ead 109 bbls 73.5 tail, 90 bbls cement rtns EXCAPE Completion Lower Beluga Proposed TD 9,321' MD, 8,479' TVD 3-1 /2", 9.3 ppf, L-80, Brd Marathon Oil Well BC 16RD BOP Stack Flow Nipple 13 5/8" 5M Annular Preventer ~ Flow Line • 13 5/8" 5M Double Ram Preventer Pipe Ram ~~ 2 1/16" 5M Blind Ram Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves Operated Valve ~Ll~-}-WJLJ~~J--~U Kill Choke L1~-'~/~LJLJ~~J 13 5/8" 5M Cross 3 1/8" 5M Hydraulically Pipe Ram Operated Valve 13 5/8" 5M Single Ram Preventer Bottom of Single gate must be 24-45" from ground level for Glacier 1 rig placement. 13 5/8" 5M x 13 5/8" 5M Drilling Spool 11" 10M x 13 5/8" 5M DSA • i Marathon Oil Well BC 16RD Choke Manifold From BOP Stack To Gas Buster To Blooey Line Bleed off Line to Shakers • • Surface Use Plan for Beaver Creek Unit, well BC 16RD Surface Location: 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. 1) Existing Roads Existing roads which will be used for access to BC 16RD are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access BC 16RD. 3) Location of existing wells Well BC 16RD will be drilled on Beaver Creek Field pad 3. A pad drawing is enclosed that shows existing wells and the proposed location of BC 16RD. 4) Location of existing and/or proposed facilities The locations of existing production facilities on Beaver Creek pad 3 are shown on the enclosed pad drawing. The existing flowline will be connected from the existing BC 16RD wellhead. 5) Location of Water Supply A water supply well exists on the pad that BC 16RD will be drilled from. 6) Construction Materials No major construction is planned on the pad at this time. Leveling of the pad for this work will be done with minimal materials needed. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7RD, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be injected into approved disposal well Beaver Creek # 2 (Alaska Oil and Gas Conservation Commission Disposal Injection Order No. 4) or hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be • made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities • A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. S & R will collect and transport sanitary wastes to their ADEC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface BC 16RD will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of BC 16RD and the other existing wells on the pad. Approval of the plan of reclamation will be obtained from the U.S. Fish and Wildlife Service prior to any reclamation work beginning. 10) Surface ownership The surface owner of the land in the Beaver Creek Unit is the U.S. Fish and Wildlife Service. The minerals are under the jurisdiction of the U.S. Bureau of Land Management. • • Operator Certification Field: Beaver Creek Well: Beaver Creek Unit, BC 16RD Surface Location: 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. I hereby certify that I, or someone under my direct supervision, have inspected the drill site and access route proposed herein; that 1 am familiar with the conditions which currently exist; that I have full knowledge of state and Federal laws applicable to this operation; that the statements made in this APD package are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed in conformity with this APD package and the terms and conditions under which it is approved. I also certify that I, or the company I represent, am responsible for the operations conducted under this application. These statements are subject to the provisions of 18 U.S.C. 1001 for the filing of false statements. Executed this 4t" day of September , 20 07 /, Name Willard J. Tank Position Title Advanced Senior Drilling Engineer Address P.O. Box 3128. Houston, TX 77253-3128 Telephone 713-296-3273 Field Representative Pete Berga (Drilling Superintendent) (if not above signature) Address 3201 C Street. Suite 800. Anchorage. Alaska 99503 (if different from above) Telephone 907-565-3032 (if different from above) E-mail wjtank marathonoil.com (optional) SECTION LINE NOT TO SCALE w J U O 0 z w z J Z O U //W~/~ A/J N 2434967.8500 E 1455858.5930 NW CORNER S34 COMPUTED POSITION SECTION 34 T7N R10W SM AK ^~ I ~~ ~~ ~~ Y TCP OF PERIMETER ~/ 1 COMAIMEM BERM B.C.U. No. 10 8' DIA. SILO N: 2433849.28 B.C.U. No. 11 E: 1457382.87 ~ 8' DIA. SILO ELEV: 160.4' \® N: 2433822.28 ~ E: 1457321.77 O oI~ ELEV:160.6O 1 B.C.U. No. 6 14.5' DIA. SILO N: 2433775.31 B.C.U. N . 5 RD ~ E: 1457332.98 14.5' DIA WELL ELEV: 160.4' , SILO \ ^ /vim(/ ACCE~ N: 2433 3.90 ~ _ \ '~ro~F/~D • E: 1457 9.97 `_®\~) ELEV: 1 .7' B.C.U. No.3 o J ~ N: 2433711.7887 ~~ E: 1457345.3373 ~ / ,, 1587' FWL\ ELEV: 160.4' I ~\ corrrtta Para eC3-1 N =2A3354].38 E =10.5]128.91 ELEV =163.58 NOTES ~~ L / B.C.U. No. 13 \ 0 \/ O 8' DIA. WELL O SILO 0 • N: 2433644.60 E: 1457313.65 ELEV: 160.8' ~. __~O . ,~ ~/ s ~ rs2• 0 O EDGE OF GRAVEL PAD 1) BASIS OF GEODETIC CONTROL AND NAD83 POSITION (EPOCH 2003) IS AN OPUS SOLUTION FROM NGS COORDINATES STATIONS "KEN1 CORS ARP", "TLKA TALKEETNA CORS ARP", AND "POT3 POTATO POINT 3 ARP" TO ESTABLISH THE POSITION OF NGS BENCHMARK V80 PID 770508. THE GEODETIC POSITION OF V80 WAS DETERMINED TO HAVE A LATITUDE OF 60°31'54.63013"N AND A LONGITUDE OF 151°04'53.81758'1N. THE ALASKA STATE PLANE COORDINATES (ASP) ZONE 4 ARE: N=2387882.657 E=1445616.986 2) BASIS OF VERTICAL CONTROL IS NGS BM V80 PID 770508 LOCATED WITHIN THE KENAI SPUR HIGHWAY RIGHT OF WAY AT MILE POST 3.75 HAVING AN ELEVATION OF 164.55 FEET NAVD88 ACCORDING TO NGS PUBLISHED DATA. 3) SECTION LINE OFFSETS DERIVED FROM TIES TO BLM MONUMENTS ALONG SOUTH BOUNDARY OF TOWNSHIP AND BLM DATA OF RECORD. TOP OF PERIMETER COMAIMENi BERM ~\ //^ \\ ~jl DRAINAGE BASIN ''~ Z EDGE OF GRAVEL PA~ \ LL ~ / (O C_V B.C.U. No. 9 B.C.U. NO. 19 / 8' DIA. WELL 8' DIA WELL SILO CELLAR ONLY / N: 2433756.16 N: 2433995.01 E: 1457406.97 E: 317469.49 ELEV: 160.4' 0 ELEV: 160.5' / 0 ~~ B.C.U. NO. 16 RD ASBUILT LOCATION ASP ZONE 4 NAD83 GRID N:2433674.563 GRID E:1457426.777 LATITUDE: 60°39'27.414"N LONGITUDE: 151 °01'11.992"W FWL = 1587' FNL = 1269' ELEV: 160.7' (NAVD88) S34 T07N R10W SM AK SCALE NORTH 0 100 200 FEET M PROJECT BEAVER CREEK UNIT PAD 3 REVISION: NO._7 DATE: 08/01/2007 B.C.U. NO. 16 RD ~ DRAWN BY: MSM Aw-TRON • WELL ASBUILT SCALE: 1"=100' ~~~n~~* 1tL'!l{11111~/1\ SURFACE LOCATION DIAGRAM ~ PROJECT NO. 073091 BOOK NO. 07-04 ~~Y ~>~ LOCATION S34, T7N, R10W, SEWARD MERIDIAN, ALASKA awreltMO•WFRMO Pm.~~. vo®m~~oa~i. FA1¢WD11]Y~mg6 WWW31tlAlft6°pM SHEET DP 1 • • VICINITY MAP 00 Scale in Feet oaJ ~ r Drillsite tro ata N Pr ject Location KENAI Spurr HWy * /BCU 10 ~ ~ Sec. 34, T7N, R10W, S.M. / ~~ C ~ B c U 9 J P _BCU 6 0~ -BCU 5 PRODUCTION PAD -BCU 3 PAD 3 ~ BCU 16 BCU 4 \ BCU 13 BCU 12 PAD 4A SEC. 33 SEC. 34 N Marathon Oil Company Road BCU 11 oy BC 14 PAD 1A t ~~\6`' BC 15 \ ,~ ~RF Bcu z BEAVER Fk PAD 2 'BCU 7 PAD 7 SEC. 4 SEC. 3 PURPOSE: PLAN VIEW PROPOSED LOCATION ON: PAD 3 Sidetrack Development Gas Well 0 AT: BEAVER CREEK PRODUCTION FACILITY BCU No. 16RD Scale in Feet IN: KENAI PENINSULA BOROUGH, ALASKA ADJACENT PROPERTY OWNER: Marathon ~ APPLICATION BY: MARATHON OIL COMPANY Kenai National Wildlife Refuge O 01~ COIYI an AAA°"TXON P y P.O. BOX 196168 ANCHORAGE, ALASKA 99519 ... ~~ :. _ _~_ ~. -_ - - Irursarp, L< ' _ .1, i r' ~ g..~~t"a ~ ~~ ,: Plocer Lake ~~ ~ ,. I, 1 `"--- -6-- -Y--- ., ~,~ s„~n ', ~ . , dr Killdeer ego n ~)~ I ~~_ I ~~ ~ Lake ~ !~ \ R Fla! Lake ~ ~ s 8 L.=\ ^" k ~ l U 1. r i r -- --.~ .. ~~ CS ~ ' 4 ~_ ~ - ~ , ,. -- -- a o f, ~ Shadura Luke ~ ~ •~ ~ f Lake Ootka <.. F .3 ~ x , .o- ~ _ ,.o _•~ ~> ., /la ' Ili 18 1 ~ 17 ~.. .. ~ ., ti _. . _ as ,' -_ ~, -•- ~ ! --- ~~ ,z ~r I -~, i i v ~" ~i II'er>a Lome ~.•_ ~ ~ J ~ ;: r_ - "~ - _. i ~ >! __ __ _ _ i? za. !~ !~ t- akula Lake `~ Beaver Creek Field ~ 19 " '20 ~: i '~ ~ ~ ~ ,: o~i ~ Ermsne Lake weu ^ 1 ~~_ ~~ C - _ ' ~ 1 - ~ ~ i~ _ - f - - - - -- -- - -- , '~ _ - - iii ' ~, , _~ ` f; C ~7 25 30 ' ~ i 29 ~ 2H 1~'.~' ~ ~ ~ ' ~9 ~ ~ r~~ .Wolf r' _ ` -- ~ ~ - N ~~ ~~ ~ K E N A I Lake ;L `~ :- ~~ al // '°ar f i ~~WenS ._1?" Welly ; ,, `i: :. 31 .i t','T~~t ~ ,~i L ~ ~ 31 - ' grill' 2 ' 4E ~ i; 3~ •~~ b Hole ~ ~~ T7N _ _ - ~~~ 0`' _ '~ i r ,- . ', - _. T6N _. ~/ webs i ~? ~ Fing Lau - i ~\~~ _ ._ ~ ~ ~ 1 ---- 6 ~~ 5~ ~ ~ i ~ ~ ----~ 2 !~ ~, ,.. t~ NATIONAL ~ ~~' ~; WILDLIFE ( v~~` ` _~ ; - ~. , (~ ..,_ +* ~, lake _- ' I _.. '„ i - i , ~~ ~~ ~ ~ 1" 8 ~ _~ _ ..~9 10 _ 11 1, ~ ~~;o~ o: 12 ~ ~1 n ~,~ ~ j '---~ v it ~' y _ ~ i '' u,~~ ~ ,! , '; '' °i \~~. ~ ,l - - ` _ .._- ... ,Lake '"~ I '~ i ~ 1 ;. r' - I .,,. i ~ R10W R9W r ~ 1 a Dorosh '3 18 \\l..j ~~ 16 15 ~ ; Lake ~' ~ _ ~. Eag a Lake _ . _` . - .1_ ~~ _ : i -°r i ' l ~~: ~• :... - ~ i .. ~ - ±M .y.. 1 ~.- ~ ~, ~ yw _ ~ .,~. ~ i ~_ - ..r.. _ ._ _.-. .. .. t. .., _~,~- -._--._.-....--.__ -_.. _-_. _.. .. _ .. -. .~ _ _ 1' -fir.. - .. .,~ ~ l -` ` ` ~ ~ r l 1 ____I ` d- ~ ~ ~ -"2(h. *i ~ i 21 22 ~" '23 , X24 ( 'I/19 ~_~ f 20 ___ .. / GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT M MARATHON 1.49°/1008 ~~ BAKER NUGNES INTEQ Plot reference wellpath is BC-16Rd Version #tA True vertical depths are referenced to Glacier 1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier 1 (RKB) North Reference: True north Glacier 1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility -Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 04-Sep-07 Well Profile Data Design Comment MD (ft) Inc (°) Az (°) TVO (ft) Local N (ft) Local E (ft) DLS (°/100ft) VS (ft) Tie On 5000.00 13.886 165.867 4458.39 -1977.19 427.54 0.00 1915.31 End of Milled Section 5020.00 16.285 165.870 4477.70 -1982.23 428.82 12.00 1920.29 End of Curve 5378.69 26.500 158.000 4811.30 -2105.55 471.19 2.95 2047.84 Begin Drop/Turn 5893.20 26.500 158.000 5271.76 -2318.41 557.19 0.00 2274.60 Target Lower Beluga-16 7836.15 22.207 84.214 7079.00 -2691.22 1096.33 1.49 2871.71 7900.00 22.207 84.214 7138.12 -2688.79 1120.34 0.00 2881.98 End of Drop 9111.50 17.000 84.214 8279.00 -2647.83 1524.60 0.43 3054.88 TD Revised 4-Sep 9320.63 17.000 84.214 8479.00 -2641.66 1585.43 0.00 3080.90 4000 T~ ~ ~ ~ Tie-in /Csg Window: 13.89° Inc, 5000.OOft MD, 4458.398 TVD, 19 ~~ End of Milled Section :16.29° Inc, 5020.008 MD, 4477.70ft TVD, 1' 2.95°/100ft End of Curve :26.50° Inc, 5378.698 MD, 4811.308 TVD, 2047.84 Begin Drop/Tum :26.50° Inc, 5893.208 MD, 5271.76ft TVD x L 8500 V a d `~ 7000 C16Rd Lower Beluga LB-ifi N 3 H 7500 MAR THON Oil Co any Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #16 Field: Beaver Creek Unit (NAD83) Well: BC-16 Facilit : Pad #3 Wellbore: BC-16Rd Target Lower Beluga-16: 22.21° Inc, 7836.158 MD, 7079.OOft TVD, 2871.71ft VS LB-23 Horizon: BC16Rd Lower Beluga LB-23 19.90° Inc, 8436.758 MD, 7639.OOft TVD, 2964.02ft VS 0.43°/1008 8000 BC 16Rd Lower Beluga LB-28 LB-28 Horizon: 18.10° Inc, 8854.53ft MD, 8034.008 TVD, 3021.918 VS BC16Rd TD Target End of Drop: 17.00° Inc, 9111.808 MD, 8279.008 TVD, 3054.88ft VS 8500 3 1/2" Csg: ~~ ~ 17.00° Inc, 9320.63ft MD, 8478.998 TVD, 3080.90ft VS h TD Revised 4-Sep: A 17.00° Inc, 9320.63ft MD, 8479.008 TVD, 3080.908 VS Fasting (ft) -nso ~~ Tie On: 4458.39ft TVD, -1977.19ft S, 427.54ft E 28 Horizon : 8034.OOft TVD, -2655.648 S, 1447.508 E LB-23 Horizon : 7639.008 TVD, -2669.358 S, 1312.17ft E \ BC16Rd BC16Rd Lower Beluga LB-28 Lower Beluga LB-16 ~~ ~~ BC16Rd TD Target ' BC16Rd Lower Beluga LB-23 Z 0 S 7 2500 3000 3,500 4000 4500 5000 5500 800 Vertical Section (ft) s°'° """i10°°" Azimuth 149.03° with reference 0.00 N. 0.00 E from wellhead MARATHON Planned Wellpath Report BC-16Rd Version #lA Page 1 of 5 ~~~~ BAKER IfY61~1ES INTEQ M MARATHON Planned Wellpath Report BC-16Rd Version #lA Page 2 of 5 rr-r~ BAKER HYt~MES INTEQ LLPAT H DATA (50 stations) fi =inter olated/eztra olate d station NID [feet] Inclinafion [°] Azimuth [°] TVD [feet] Vert Sect feet North [feet] East [feet] Grid East [us survey feet] Grid North us surve feet] DLS °/100ft] Build Rate [°/100ft] Turn Rate [°/100ft] esign Comments 5000.00 13.886 165.867 4458.39 1915.31 -1977.19 427.54 1457823.56 2431691.11 0.00 0.00 0.00 Tie On 5020.00 16.285 165.870 4477.70 1920.29 -1982.23 428.82 1457824.75 2431686.04 12.00 12.00 0.02 nd of Milled Section 5100.00' 18.529 163.399 4554.04 1943.35 -2005.29 435.19 1457830.77 2431662.89 2.95 2.80 -3.09 5200.00' 21.368 161.022 4648.03 1976.57 -2037.76 445.65 1457840.73 2431630.27 2.95 2.84 - - -2.38 ---- 53~~~ 24.233 . 159.182 4740.21 ~ -- 2014.60 -2074.17 458.87 145?&53.38.. 2431593.65 2.95 2.87 -1.84 ___ 5378.69 26.500 158.000 4811.30 2047.84 -2105.55 471.19 1457865.21 2431562.09 2.95 2.88 -1.50 nd of Curve 5400.00' 26.500 158.000 4830.38 2057.23 -2114.37 474.75 1457868.63 2431553.22 0.00 0.00 0.00 5500.00 fi 26.500 158.000 4919.87 2101.30 -2155.74 491.47 1457884.70 2431511.60 0.00 0.00 0.00 5600.00 26.500. 158.000 5009.36 2145.38 -2197.11 508.18 _ 1457900.77 2431469.97 0.00 0.00 0.00 - -- 5700OQ't' 26.500 158.000 509$.86 2189.45 -223848 524.90 _ 1457916.84 243142$.35 0.00. 0.00 0.00 _ _ 5800.00- 26.500 158.000 5188.35 2233.53 -2279.85 541.61 1457932.91 2431386.73 0.00 0.00 0.00 5893.20 26.500 158.000 5271.76 2274.60 -2318.41 557.19 1457947.89 2431347.94 0.00 0.00 0.00 egin Drop/Turn 5900.00 j' 26.433 157.829 5277.84 2277.60 -2321.21 558.33 1457948.99 2431345.11 1.49 -0.98 -2.51 6000.00' 25.479 155.226 5367.76 2320.98 -2361.36 575.74 1457965.77 2431304.71 1.49 -0.95 -2.60 -- __ bl(1U.00~' 24:573 152.440, 5458.37. -- 2363.12 -239432 594.38 145798.81 243226(x.46 1.49, __y.__-0.91 -2.79 _ _ 6200.00 j' 23.722 149.460 5549.63 2403.99 -2435.08 614.22 1458003.10 2431230.40 1.49 -0.85 -2.98 6300.00' 22.932 146.279 5641.45 2443.57 -2468.61 635.26 1458023.61 2431196.55 1.49 -0.79 -3.18 6400.00' 22.210 142.894 5733.80 2481.82 -2499.89 657.48 1458045.34 2431164.93 1.49 -0.72 -3.39 6500.OOt 21.562 139.305 5826.59 ; 2518.73 -2528.90 680.86 ~ 1458068.27 2431135.56 1.49 -0.65 -3.59 6600.00' 20.495 135.517 5919.78 ' 2554.26 j -2555.6} 705.40 ' 1458092.39 2431108.4? 1.49 -0.57, -3.79 6700.00' 20.516 131.546 6013.30 2588.39 -2580.02 731.07 1458117.67. 2431083.68 1.49 -0.48 -3.97 6800.00- 20.132 127.411. 6107.08 2621.11 -2602.10 757.85 1458144.11 2431061.19 1.49 -0.38 -4.13 6900.00 j' 19.847 123.143 6201.06 2652.38 -2621.83 785.74 ' 1458171.68 2431041.02 1.49 -0.28 -4.27 7000.OOt 19.666 118.777 6295.17 2682.19 -2639.22 814.70 -_ _. 1458200.37 . .. _ 2431023.19 1.49 _ -0.18 _._ . -4.37 ._.. 7100.00 19.592 I14.357 --- -t 6389.37 ! -- 2710:51 -2654.23 ~ __-- 844.72 ~ . ., _. 1458230.1b ' 24310UZ7t 1.49 . -0.07; -4.42 ` _J ~LLYA 1 ri 1)A 1 A (,U SLaT10nS) j = IIIICrpOlaietLe%LrapDlaiCQ STaTIOn MD [feet] Inclination [°] Azimuth [°] TVD [feet] Vert Sect [feet] North [feet] East (feet] Grid East [us survey feet] Grid North [us survey feet] DLS [°/IOOft] Build Rate [°/100ft] Turn Rate [°/100ft] 7200.OOt 19.626 109.929 6483.57 2737.34 -2666.87 875.79 1458261.02 2430994.59 1.49 0.03 -4.43 7300.00' 19.768 105.538 6577.73 2762.64 -2677.13 907.87 1458292.94 2430983.84 1.49 0.14 -4.39 7400.OOt 20.015 101.229 6671.77 2786.41 -2684.99 940.95 1458325.89 2430975.47 1.49 0.25 -4.31 7500.001 20.364 97.042 6765.63_ 2808.62 -2690.46 975.01 _ 1458359.86 2430969.47 1.49 0.35 -4.19 7600.OOj~ 20.809 93.008! 6859.25 ; ~ 2829.26 I -2693.52 ; 1010.02 i 1458394.81 2430965.87 1.49 0.45 -4.03 7700.0.01 21.345 89.151 69.52.56 2848.32 ~ - - -2694.18 ---_._ _ __ _ _ 1045.95 _ _ _ _ 1458430.73 ! 2430964.65 _. __ _; _ 1.49 0.54 -3.86 7800.00' 21.964 85.488' ~ 7045.51 ' 2865.79 ~ ~ -2692.441 1082.79 1458467.59 ~ 2430965.81 1.49 0.62 -3.66 7836.15 22.207 84.214 7079.001 ~~ 2871.71 -2691.22 1096. 1458481.14 2430966.83 1.49 0.67 -3.53 7900.00 22.2071 84 2141 7138.12 ~ 2881.98 2688.79 ~ 1120.34 1458505.19 2430968.89 0.00 0.00 0.00 _- 8000.00' 21.777( --`--- ` 84.2141 . 1 1 _ ------_- 7230.84 2897.91 - -2685.01 ~ - 1157.60 ---1458542.50 -- -- _ _ _ 2430972.08 ~ ~- 0.43 -0.43 _.~__ 0.00 8100.00' 21.347 84.214 7323.84 2913.55 -2681.31 1194.16 1458579.11 2430975.22 0.43 -0.43 0.00 8200.00' 20.918 84.214 7417.12 2928.89 -2677.67 1230.03 1458615.03 2430978.30 __ 0.43 -0.43 0.00 8300.00' 20.488 84.214 7510.66 2943.94_ ~ -2674.11 1265.20 1458650.25 2430981.31 0.43 -0.43 0.00 8400.00 fi 20.058 84.214 7604.47 2958.68 r -2670.62 1299.67 1458684.77 2430984.27 0.43 -0.43 0.00 8500.00 fi 19.628 84.214= 7698.53 ~ 2973.13 -2667.20 1333.45 1458718.59 2430987.17 0.43 -0.43 0.00 8600.OOt 19.198 84.214, 7792.84 i 2987.27 -2663.84 1366.51 1458751.70 2430990.01 0.43 -0.43 0.00 8700.OOf 18.769 84.214 7887.40 3001.11 -2660.56 1398.88 1458784.11 2430992.78 0.43 -0.43 0.00 8800.001 18.339 84.214 7982.21 3014.65 -2657.36 1430.54 1458815.81 2430995.50 0.43 -0.43 0.00 8900.OOj' 17.909 84.214 8077.24 3027.89 -2654.22 1461.48 1458846.81 2430998.15 0.43 -0.43 0.00 9000.OOt 17.479 84.214 8172.51 3040.82 -2651.16 1491.72 1458877.09 ~ 2431000.75 0.43 -0.43 0.00 9100.OOfi 17.049 84.214 8268.01 3053.45 -2648.17 1521.25 1458906.65 2431003.28 0.43 -0.43 0.00 9111.50 17.000 84.214 8279.00 3054.88 -2647.83 1524.60 1458910.01 2431003.57 0.43 -0.43 0.00 9200.OOfi 17.000 84.214 8363.64 3065.90 -2645.22 1550.34 1458935.79 2431005.78 0.00 0.00 0.00 9300.00' 17.000 84.214 8459.27 3078.34 -2642.27 1579.43 1458964.92 2431008.27 0.00 0.00 0.00 Lower Beluga-16 of Planned Wellpath Report gp ~~~~ KER BC-16Rd Version #lA EIY6NES MARATHON Page 3 of 5 INTEQ MARATHON Planned Wellpath Report BC-16Rd Version #lA Page 4 of 5 INTEQ Operator ,. ~ ~ MARATHON Oil Company Slot slot #16 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC-16 Field Beaver Creek Unit (NAD83) Wellbore BC-16Rd Facility Pad #3 Sidetrack from BC-16 at 5000.00 MD HOLE & CASING SECTIONS Ref Wellbore: BC-16Rd Ref Wellpath: BC-16Rd Version #lA String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 16in Open Hole 105.00 2515.00 2410.00 105.00 2298.16 -0.15 -0.07 -802.00 174.19 12.25in Open Hole 2515.00 5000.00 2485.00 2298.16 4458.39 -802.00 174.19 -1977.19 427.54 20in Conductor 0.00 105.00 105.00 0.00 105.00 0.00 0.00 -0.15 -0.07 13.375in Casing Surface 0.00 2503.00 2503.00 0.00 2288.06 0.00 0.00 -795.66 172.85 9.625in Casing 0.00 5000.00 5000.00 0.00 4458.39 0.00 0.00 -1977.19 427.54 8.Sin Open Hole 5000.00 9320.63 4320.63 4458.39 8478.99 -1977.19 427.54 -2641.66 1585.43 3.Sin Casing Production 0.00 9320.63 9320.63 0.00 8478.99 0.00 0.00 -2641.66 1585.43 TARGETS Name MD [feet] TVD [feet] North [feet] ~ East [feet] i Grid East ~ [us survey feet] Grid North [us survey feet] Latitude [o] Longitude [o] Shape 1 BC16Rd L B l LB 16 7836.15 X9.00 - ' -2691.22 - r 1096.33 145 i14 2430966.$3- - . 60 39 00. circle ) ower e uga - BC16Rd L B l LB 23 7639.00 -2667.45 1340.01 1458725.15 2430986.81 60 39 01.145N 151 00 45.112W circle ower e uga - BC16Rd L B l LB 28 8034.00 -2653.83 1508.84 1458894.15 2430997.81 60 39 01.279N 151 00 41.726W circle ower e uga - BC16Rd TD T t 8279.00 -2653.83 1508.84 1458894.15 2430997.81 60 39 01.279N 151 00 41.726W circle arge M MARATHON Planned Wellpath Report BC-16Rd Version #lA Page 5 of 5 r~~r BAKER NY6NES INTEQ SURVEY PROGRAM Ref Wellborer BC-16Rd Ref Wellpath: BC-16Rd Version #lA Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore 0.00 SOOO.OO~TaviTrak (Magcorrl) 0 ~BC-16 5000.00 9320.63 aviTrak(Standard) C-16Rd M MARATHON ARA HON Oil Co a Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #16 Field: Beaver Creek Unit (NAD83) Well: BC-16 Facilit Pad #3 Wellbore: BC-16Rd ~,/~~ BAKER F111GI~ES INTEQ Plot reference wellpath is BC-16Rd Vernon #1A True vertical depths are referenced to Glacier 1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier 1 (RKB) North Reference: True north Glacier 1 (RKB) to Mean Sea Level: '179 feet Scale: True distance Mean Sea Level to Mud line (Facility - Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 04-Sep-07 Fasting (ft) 600 750 900 1050 1200 1350 1500 1850 2300 1900 2400 2000 2100 2600 2200 23~ 2800 2400 -750 -900 2600 3200 2800 3400 _~00 ~~ 3000 3800 -1350 4000 3200 42 -~ 8300 0G 4400 3400 4500 6800 5000 3600 _1650 ~_ ~ 3800 c L ~ •1600 O Z 4000 4200 -1950 440 4500 4600 4600 4800 4700 5200 -2100 5 4800 <? 4900 a+ 5000 -2250 5200 5400 6~ 6,Lp0 O ~' ro -1200 -1350 O~ 0~' Z 0 f~ Fasting (ft) M MARATHON Clearance Report Closest Approach BC-16Rd Version #lA Page 1 of 27 r~~r BAKER NYl~NES INTEQ Operator .. ~ ~ MARATHON Oil Company Slot slot #16 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC-16 Field Beaver Creek Unit (NAD83) Wellbore BC-16Rd Facility Pad #3 Sidetrack from BC-16 at 5000.00 MD Projection System ~ . NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System We1lArchitectTM 1.2 North Reference True User Jonethoh Scale 0.999938 Report Generated 04-Sep-07 at 08:41:49 Wellbore last revised 09-Aug-07 Database/Source file WA Anchorage/BC-16Rd.xm1 ~, ~ ~ Local coordinates Grid coordinates Geographic coordinates North [feet] East [feet] Easting [US feet] Northing [US feet] Latitude [°] Longitude [°] Slot Location -1268.66 1588.34 1457426.78 2433674.56 60 39 27.414N 151 O1 11.992W Facility Reference Pt 1455858.59 2434967.85 60 39 39.909N 151 O1 43.861 W `Field Reference Pt 1455858.59 2434967.85 60 39 39.909N 151 O1 43.861W Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00 feet Surface Position Uncertainty . included Declination 19.22° East of TN Dip Angle 73.57° Magnetic Field Strength 55501 nT w~ ,~. POSITIONAL UNCERTAINTY CALCULATION SETTINGS M MARATHON ANTI-COLLISION RULE Clearance Report Closest Approach BC-16Rd Version #lA Page 2 of 27 [/i® BAKER NY6NES INTEQ Rule Name E-type Closest Approach w/Hole&Csg Limit:0 StdDev:3.00 w/Surface Uncert Rule Based On Ellipsoid Separation Plane of Rule Closest Approach Threshold Value 0.00 feet Subtract Casing & Hole Size yes Apply Cone of Safety no HOLE & CASING SECTIONS Ref Wellbore: B C-16Rd R ef Wellpath: BC-16Rd Version #lA String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W (feet] End N/S [feet] End E/W [feet] 8.Sin Open Hole 5000.00. 9320.63 4320.63 4458.39 8478.99 -1977.19 427.54 -2641.66 1585.43 ! 3.Sin Casing Production 0.00 9320.63 9320.63 0.00 8478.99 0.00 0.00 -2641.66 1585.43 .SURVEY PROGRAM Ref Wellbore: BC-16Rd Ref Welluath: BC-16Rd Version #lA Start MD [feet] End MD [feet] Positional Uncertainty Model Log Name/Comment Wellbore 0.00 5000.00 aviTrak (Magcorrl) C-16 5000.00 9320.63 aviTrak (Standard) C-16Rd MARATHON Clearance Report Closest Approach BC-16Rd Version #lA Page 3 of 27 r~~r BAKER Nu6MEs INTEQ Operator ,. , , MARATHON Oil Company Slot slot #16 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC-16 'Field Beaver Creek Unit (NAD83) Wellbore BC-16Rd Facility Pad #3 Sidetrack from BC-16 at 5000.00 MD CALCULATION RANGE & CUTOFF From: 5000.00 MD To: 9330.00 MD C-C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (8 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min C-C Diverging Ref MD of Min C-C Min C-C ACR Facility Slot Well Wellbore Wellpatb MD Clear Dist from MD Min C-C EII Sep Ell Sep Status [feet] [feet] [feet] EII Sep [feet] Dvrg from Ifeetl (feetl Pad #3 Slot #13 BC-13 BC-13 MWD<0-10500'> 5060.00 1389.94 8700.00 5118.97 1320.02 8400.00 PASS Pad #3 slot #10 BC-10 BC-10 MWD <0-8854> 5000.00 2441.59 9320.63 5000.00 2357.33 9320.63 PASS Pad #3 slot #11 BC-11 BC-11 MWD <0-8931> 5000.00. 2284.15 5000.00 5000.00 2247.60 5000.00 PASS Pad #3 slot #16 BC-16 BC-16 MWD <0-6422> ~ ~ 5000.00 0.00 5000.00 5000.00 -1.48 5000.00 FAIL Pad #3 slot #3 BC-3 BG3 MSS <0-b393'>,MWD<6433 -10005> ' 5000.04 3253.90 5000.00 5000.00 3191.78 5000.00 PASS Pad #3 slot #5 BC-5 BC-5 GMS <0-600> MMS <668-7960> GMS <8000-16247> 5000.00 2108.29 5000.00 5000.00 2069.94 5000.00 PASS Pad #3 slot #6 ' BC-6 BC-6 GMS <0-15844> 5000.00 2140.33 9320.63 5000.00 2096.61 9320.63 PASS Pad #3 slot #9 BC-9 BC-9 MWD <0-5923> GCT Gyro <5943-8858> 5000.00 848.88 5000.00 5000.00 733.95 5000.00 PASS _~ ''~ • Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN ~_ _ ~ , IFE • Prepared For: MARATHON OIL COMPANY Well BC-16 RD Prepared by: Jim Dwyer Reviewed by: Hal Martens Presented to: Will Tank August 9, 2007 ~~ Kenai Peninsula, Alaska • '~ ~° Marathon Oil Company PO BOX 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: • Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. Enclosed is the recommended drilling fluid program for the BC-16 RD well to be drill this year. The following is a brief synopsis of the program. Overview: BC-16 lZD is a sidetrack of the existing well. The plan is to kill and abandon the existing well, drill a 8-1/2" sidetrack to +/- 9321' MD, run and cement 3-1/2" EXCAPE completion. The major concern for this sidetrack is underpressured sands in the Beluga formation with targets in the Lower Beluga being the LB-16, 23, and 28. Abandonment & Milling: The existing tubing pulled will be pulled and a whipstock will be set @ +/- 5000' MD. F1oPro (with no SafeCarb) will be used for the milling fluid as it was on the SU 41-15 RD with no problems. Ditch magnets will be installed to capture metal cuttings. A LOT will be performed prior to drilling ahead. Sidetrack Interval: The F1oPro milling fluid will be further conditioned for drilling the OH sidetrack. Connection and trip gas should be monitored constantly to prevent a well control issue. Most of the target zones are underpressured. Formations are tight so a well maintained SafeCarb program will prevent severe losses. A 3-1/2" EXCAPE completion will be run and cemented in place. Completion: After logging, the 3-1/2" EXCAPE completion will be run and cemented. Corrosion control will be added to the packer fluid and the cement will be displaced with 6% KCl brine. Jim Dwyer Project Engineer /M-I SWACO NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties regUlred. 1~ • • Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth ND Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 9-5/8" 12-1/4" 6315' 5765' Kill /Cleanup Fluid 8.8 3 $16,295 PBTD FloPro for milling /Drilling 9.1 6 Shale Shakers / ditch magnets 3-1/2" 8/1/2" 9321' 8479' Flo-Pro w/SafeCarb Shale Shakers / 9.1 - 9.9 9 $166,530 Desilter N/A 3" Completion 9321' 8479' 6% KCl Brine 8.6 6 $13,926 - Insure magnets are in proper location prior to milling out of 9-5/8" casing. - Cost does not account for any losses of fluid to the formation. Mud cost does include engineering charges. ~~ • ~~ • Marathon Oil Company Well Name: BC-16 RD Ver Location: Kenai, Alaska. Offset Well History Well Hole Size Depth PPG PV YP FL Comments BC #11 17.5 400 8.75 15 25 14 Spud in 1520 8.95 17 26 12.2 Drlg ahead, wiper trip ok, drlg ahead 2202 9.4 16 18 10.4 Drlg to csg point, lower yield point, run 13-3/8" casing 12.25 2242 9.2 7 19 14.8 Dr1g out, displace to FloPro mud drlg ahead 3697 9.35 10 18 18.6 NOTE: No fluid loss control in fluid 4656 9.35 8 20 19.6 Drlg ahead 5714 9.35 9 22 18.4 Short trip OK, drlg ahead 5910 9.5 9 20 18.4 Adding SafeCarb to lower mud losses to formation 6620 9.4 10 20 15.4 Trip out, OK, RIH wash to bottom, drlg ahead 6825 9.5 11 28 17.8 Drlg ahead, add lubetex, cond mud, short trip, ream as needed, drlg ahead 7120 9.5 11 29 7 Drlg ahead, pump hi vis sweep, short trip OK, reduce FL with Pac 7260 9.5 11 27 7.2 Drlg to TD, condition mud, run 9-5/8" cag & cement BC #12 16 107 8.6 8 6 18 Spud in 1045 8.75 10 32 12 Drlg ahead 2100 9.4 13 17 9.6 Drag to csg point, lower fluid loss, run 13-3/8" casing 12.25 2615 8.9 8 21 9.4 Drtg out, displace to FloPro mud drtg ahead 3941 9.1 10 22 7.6 Drtg to 3498, short trip OK, drag ahead 5772 9.2 10 23 7.4 Drlg ahead, short tirp OK, drag ahead 6408 9.25 12 23 6.2 Drtg ahead, trip for bit, trip OK 6848 9.25 14 20 6.8 Drag ahead 7183 9.25 13 18 7.6 Drlg to csg point, short trip, work tight spots, 2' fill, POH, rung 9-5/8" csg BC #13 16 1013 8.75 8 25 20 Spud in, abundant clay @ 1400' 2301 9.05 10 28 9.6 Drlg ahead 2303 9.15 12 20 9.2 Drlg to cag point, run csg, stopped @ 220', mill junk?, run & cmt casing 12.25 2360 8.95 12 21 7.2 Drlg out, displace to FloPro mud, LOT = 15.4 PPG, drlg ahead 3456 9.25 12 19 7.4 Drlg ahead, shakers plugging, thin mud, drlg ahead 4353 9.2 11 23 6.9 Clean out flowline, drlg ahed, wiper trip OK, drlg ahead 5486 9.2 11 21 6.6 Drlg ahead, wiper trip OK, drlg ahead 6360 9.2 10 25 7.2 Drlg ahead, maintain PPG with solids van, repair #1 shaker, drtg ahead 6477 9.3 11 25 7.4 POH for bit, some tight spots, RIH, ream last 250' to bottom 6861 9.2 11 23 6.6 Drlg ahead, repair MWD, wiper trip, tight -backream, RIH to drlg 7255 9.3 14 24 5.4 Drlg ahead, repair elevators, ddg ahead, hole taknit 3 - 10 bbls per hour 7308 9.3 12 26 8 Drlg to csg point, condition mud, losing 3 - 5 BPH, POH to run csg 7308 9.4 16 29 7.8 Run & cmt 9-5/8" casing BC #14 16 145 8.65 15 23 18 Spud in 1292 8.9 16 27 16 Drtg ahead, short trip OK, drlg ahead 2130 9.3 21 23 8.4 Drtg to csg point, trip OK, run 13-3/8" casing 12.25 2649 9 11 14 8.4 Drlg out, displace to FloPro mud drlg ahead 3441 9.25 11 14 8.4 Drill ahead 4534 9.15 10 19 7.6 Drlg ahead, run van for clay buildup, short trip OK 5672 9.45 10 19 8.8 Drlg ahead 6838 9.45 13 19 6.4 Drig ahead, short tirp OK, drlg ahead 7203 9.5 12 22 6.6 Drig to 7203' slow, POH for new bit 7610 9.8 13 22 6 Drlg to csg point, short trip, tight, backream, re-trip, OK, POH for casing IFE C ~~ Marathon Oil Company Well Name: BC-16 RD Ver. Location: Kenai, Alaska. Estimated Product Usage Summary PRODUCT Kill / Cleanup Milling /Sidetrack Completion Total Usage % of Total Cost M-I Bar 1152 1152 5.40 Lubetex 29 29 12.81 Klagard 8 8 3.46 Conqor 404 5 5 3.93 Sodium Meta Bisulfate 4 4 .95 Soda Ash 10 10 .11 Conqor 303 4 4 1.18 FloVis 40 154 194 23.81 Asphasol Supreme 38 38 1.93 KCl 264 807 184 1255 13.81 Polypac Supreme UL 77 77 7.17 SafeCarb 10 576 576 6.55 SafeCarb 40 576 576 6.55 SteelLube EP 15 15 8.00 Defoam X 4 4 0.24 Freight Surcharge 3.21 Engineer Service 5 7 6 18 ~~ w { ~1~ • Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. Interval Summary -Milling +/- 5000' Drilling Fluid System F1oPro Milling Fluid (utilize brine from well kill operations) Key Products loVis / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate / KCl Shale Shakers / Ditch Magnets Recommended shaker screens - 180/180/150 mesh Potential Problems Birds Nests hole cleanin nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Metal Interval Weight Viscosity 1 min Fluid Loss MBT content (ft) (ppg) (cp.) (cps) (mU30min) (%) +/-5000 9.1 12 - 18 +-/ 30,000 < 7 cc 0 0 - Build 6% KCl brine for kill operations. - After kill operations, cleanup and cementing, check pH of brine prior to building milling fluid. NOTE: If pH of brine is 10.5 or less then use Flovis for viscosity. If pH is above 10.5 then Biozan is recommended for viscosifying the brine. - Build F1oPro system as per attached formula without addition of SafeCarb when milling window. Insure ditch magnets are in place at shale shakers. - Mill out window and circulate hole clean. - Recondition F1oPro prior to drilling ahead from window. SafeCarb can be added to system now. Make sure system is balanced before POH after adding SafeCarb. - Estimated volume usage for milling/kill operations - 659 barrels. ~~ ~ ~ • ~' ~E • Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole 5000 - 9321' Drilling Fluid System Flo-Pro Fluid (reconditioned from milling fluid) Key Products F1oVis / Caustic Soda / MI Bar / Polypac Supreme UL / Congor 404 Sodium Meta Bisulfate / KCl / K1aGard /SafeCarb Solids Control Shale Shakers / Desilter /Centrifuge Recommended shaker screens - 230 - 270 mesh Potential Problems Lost circulation in Lower Beluga /differential sticking /swab-surge nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (p g) (c .) (cps) (mV30min) (%) 500 - 9321' 9.1 - 9.9 12 - 18 +/- 40,000 < 6 < 8 < 5 - Recondition F1oPro milling fluid before drilling ahead. SafeCarb can now be added to fluid for underpressured zones in the lower Beluga. Daily maintainence of SafeCarb is needed to maintain PSD (particle size distribution) especially thru underpressured zones. SafeCarb will be ground down daily during drilling and circulating. - Run as fine of shaker screens as possible to minimize drill solids buildup. Run solids van if weight becomes too high. - Utilize SteelLube initially if torque is an issue (this will reduce metal to metal friction first). Only after a concentration of 1 %SteelLube is achieved should Lubetex be added as needed. - Run daily check on K+ of the mud. Chloride content is no indication of K+ inhibition in mud. If K+ begins to decrease, raise concentration with additions of K1aGard and KCL. - Condition fluid prior to running Excape completion. - Estimated volume usage 1920 barrels. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~y w • Marathon Oil Company '~ Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. Fluid Formula- 8-1/2" Interval BEAVER CREEK 16 RD 8 1/2" Interval from 5000 - 9321' Input Descri tion Beaver Creek 16 RD Mud Wei ht 9.0 - 9.5 Preh drated Gel No Wei ht Material Cale Bart KCl Chloride 30000 Wei ht Material<SG 4.2 KCI Wt% 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Products Concent rati Field Ib Water 313.29 Soda Ash 0.25 Flovis Plus 2.00 SafeCarb 10 15.00 SafeCarb 40 15.00 Potassium Chloride 19.53 CONQOR 404 2.00 KlaGard 6.00 Sodium Metsbisul hite 0.50 Pol Pac UL 2.00 Caustic Soda 0.50 Tor ue and / or ti ht hole while directional LubeTex 7.50 Metal to metal friction with drillpipe thru wi Nu~- 313.29 0.895 0.25 0.000 2.00 0.004 15.00 0.016 15.00 0.016 19.53 0.023 2.00 0.004 6.00 0.012 0.50 0.001 2.00 0.004 0.50 0.001 in ,add 1- 3% b volume: 7.50 0.019 w, add 1- 2% by volume: Product ml Usa e 313.29 0.00 0.10 Treat out Ca++ 1.33 Viscosifier 5.56 Brid in a ent 5.56 Brid in a ent 8.17 Inhibition 1.43 Corrosion control 4.30 Inhibition Ph control 2.921 Lub I I Mix products in order listed above I 386.4 i Weight 386.4 Estimated Volume 9.2 30000 1920 IFE ~';~, • 1~ Operator. MarathanOicalpany Max Permeability : 20 mDerty MI S'W14C0 ~ PTI B RI DG E'"' well ~~ Bc 1s ~ Sand Control Device Location: Lower Beluga inimum Opening Size : 305 micron. _ ____ ©1999.20061VEILL.C.-AlRghtsReser~edCOmTrIf.Y1tS: EXCapeWell 1/7 Guideline: 43.6 micron Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. optimum&idgingAgl»t Blend forLowerBeluga 1 ~ 0. H 0. a 0. C~ ~ 0. a 0. f3 0. 0. T FI ui ®6fld v7 Guideline i rno - D5o - D90 D10Target/Blend/Fluid: 02 / 12 / 1S nierons DSO Target/Blend/Fluid: 4.6 / 17.6 / 28.1 nicrons D90Target/Blend/Fluid: 14S / 75.6 / 85.6 microns Fixed Blend for 0 >b 100 % CPS Range Brand Name BridainaAaentllblbbll V I° Mud 30.0 50.00 A=Safe-~arb2(VF) 0.0 0.00 B=Safe-Carb10 (F) 15.0 25.00 C=Safe-Garb 20 15.0 25.00 D=Safe-Carb4o(AIQ 0.0 0.00 E=Safe-Carb260 (C) 0.0 0.00 - C o°i° :_ Mud ~~ ~ - 50.0% B 25.0% Sim~iation Acctracy Calcium Carbonate added : 30 Ib/bb Avg Error 0 -100 % CPS Range :14.20 Max Error 0 -100 % CPS Range :48.62 1x1171 1x1d~ 1x101 1x102 1x103 1x10° Particle Size (micrais) IFE Eii' :~ • _~ ~ r `~'~ • Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. I_n_ terval Summary -Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well BC-16 RD Volumes: Tubing Volume 3-1~2~~ Tubing Annular Volume Casing x Tubing 3.50 x 2.992 x 9321 ft 9.625 x 8.681 @ 5000 ft MD 8.500 x 3.50 @ 9321 ft MD 81.09 barrels 306.66 barrels Open Hole x Tbg 120.23 barrels Total Annular Volume 426.89 Tubing Volume 81.09 Total Hole Volume 5o~.ss Treatment Procedures. After the 3-1 /2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an ditional 307 barrels of drilling fluid. Add 1 drum of Conqor 303A and 1 sack of Sodium Meta Bisulfate for each 95 barrels of drilling fluid pumped drums 8 4 sacks total) After the 307 barrels of drilling fluid with treatment have been pumped downhole, begin the cement job. ure will place corrosion ~~ r • • ~'~ Marathon Oil Company r=- ~ Well Name: BC-16 RD Ver. 2 ~' Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ~~:I~I~:Z~P-T~ 1~:~~1~ 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ~~ ~ ~ • _~ -" 1~ • Marathon Oil Company Well Name: BC-16 RD Ver Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammabili Reactivi PPE ASPHASOL SUPREME Shale Inhibitor 1 1 0 J BORAX Inorganic Borate 1 0 0 E CALCIUM CHLORIDE Densifier 1 0 0 E CIRTIC ACID pH Adjuster 1 0 0 E CONCOR 303A Corrosion Inhibitor 2 1 0 E CONCOR 404 Corrosion Inhibitor 1 1 0 J D-D CWT Fluids Additive 2 1 0 J DEFOAM X Defoamer 1 1 0 J DESCO CF Dispersant 1 1 0 E DUAL-FLO Fluids loss reducer 1 1 0 E FORM-A-SET AK Loss circulation Material 1 1 0 E FORM-A-SET XL Fluids Additive 2 1 0 E FORM-A-SET RET Loss circulation Material 1 1 0 J HEC-10 Viscosifier 1 1 0 E FLO-VIS PLUS Viscosifier 1 1 0 E STEEL LOBE EP Oil well additive Lubricant 1 2 0 J SODIUM BICARB Alkalinity control 1 0 0 E SODIUM META Oxygen Scavenger 1 1 0 J SPERSENE CF Dispersant 1 1 0 E GELEX Bentonite Extender 1 0 0 E G-SEAL Graphite LCM 1 1 0 E KLAGARD Shale Control 0 1 0 J LUBETEX Lubricant 1 1 0 J MI BAR Weighting Agent *1 1 0 E MI GEL Viscosifiet *1 1 0 E MI SEAL F, M, C LCM *1 1 0 E IFE • Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS MIX II F, M, C LCM *1 1 0 E NUT PLUG F, M, C LCM *1 1 0 E POLYPAC'S Fluid Loss Control *1 1 0 E Potassium Chloride Shale Inhibitor, Densifier 1 0 0 E SafeCarbs (all) Bridging * weighting agent *1 0 0 E SAFEKLEEN Surfactant 1 1 0 J SALT Densifier 1 0 0 E SAPP Dispersant *1 0 0 E SODA ASH Calcium precipitation 1 1 0 E DRILLZONE ROP Enhancer 1 1 0 J SCREENKLEEN Dispersant/Emulsifyer 1 1 0 J BIOBAN BP-PLUS Biocide 2 1 1 J GREENCIDE 25G Biocide 3 0 0 J CAUSTIC POTASH Alkalinity Control 3 0 1 X ~'^~'^''`-~ ' Alkalini±y Contro! 3 0 1 X HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions IFE • ~~ Marathon Oil Company Well Name: BC-16 RD Ver. 2 Location: Kenai, Alaska. Contacts Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Jim Dwyer Project Engineer jdwyer@miswaco.com 907 274-5011 907 317-4556 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8722 907 252-4218 MI SWACO Oliver Amend Field Engineer amend@acsalaska.net 907 283-0895 907 398-9474 MI SWACO (home) Locke Rooney Field Engineer Irooneyl@alaska.net 907 235-0598 907 398-9474 MI SWACO (home) John Nicholson /Dan Drilling Foremen alaska_drilling@marathon 907 283-1312 Byrd / Rowland oil.com Lawson /Mike Feketti Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~~ ~ *. TRANSMITTAL LETTER CHECKLIST WELL NAME ~L' ~~ .e4 PTD# o?D~/y?~S4 Development Service Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well , (If last two digits in permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - -_~ from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce /inject is contingent upon issuance of a conservation order approving a spacing exception. , assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and IO' sample intervals through target zones. Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for (name of well) until after {ComRan~Namel has designed and implemented a water well testing program to provide baseline data on water quality and quantity. SCompany Name) must contact the Commission to obtain advance approval of such water well testing ro ram. Rev: 7/13/2007 ~ • ^^ ~ ~ I d N y ~ ~ ~ ~ ~ ~ ~ O : d ~ ~ ~ ~ ~ ~ ~ ~ : ~ I ~ ~ ~ ~ ~ ~ M: : n: ~ n Y 0.. o 'o U : c, W o ~ ~ m ~ m Q~ O ~ m: ~ ~ ~ ~ N, ~ ~ O! , ~; i ~ C' U: °p a' ~ c. ~f Cf ~~ n. M' ~ C~ ~ ~ ~ ~ i ~ ~ c: ~ ~: Z ~ ~ N~ N' ~ ~ ~ C O, ~ N y N O U ~ f6 (/1 , d ~ ~ ~ , w ~ ~ ~ ` '~. a A ~ ~A~ N ~ ~ N: N~ N N ~ ~ ~ N~ N: N, N ~ >'~ ~ N~ N~ N N >'~ ~" ~ N~ (~: N N ~~ ~, !n, H~ N N ~ ~ N N ~ ~ ~ ~ Q Q O ~ Z' Z' Z' N~ N, } N~ N: N~ N N N }' }' }' N~ N }' N~ N }' V1: y~ N N >' ~ N: N~ N. 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